Question 1

Explain the five fundamental principles of professional ethics.

Accepted Answer

The answer of Explain the five fundamental principles of professional...

Question 2

Explain the purpose and major contents of an engagement letter between the auditor and their client.

Accepted Answer

The answer of Explain the purpose and major contents of...

Question 3

Distinguish between independence of mind and independence in appearance.

Accepted Answer

The answer of Distinguish between independence of mind and independence...

Question 4

Independence is considered one of the key characteristics of auditors.Explain why auditor independence is so important to the effectiveness of an audit and explain the various threats to an auditor's independence.

Accepted Answer

The answer of Independence is considered one of the key...

Question 5

Discuss the findings in the Esanda case as they relate to an auditor's liability to a third party.

Accepted Answer

The answer of Discuss the findings in the Esanda case...

Question 6

The key difficulty for third parties in legal action against auditors has been establishing that a duty of care was owed to them by their auditor.Explain the development of the relevant legal principles relating to an auditor's duty of care to third parties with reference to specific case law.

Accepted Answer

The answer of The key difficulty for third parties in...

Question 7

The final stage in the client acceptance and continuance decision process involves:

Accepted Answer

The final stage in the client acceptance and continuance decision process involves the preparation of an engagement letter. This letter outlines the terms of the engagement, including the scope of work, responsibilities of both the auditor and the client, and the fee structure. The engagement letter is an important step in establishing clear communication and expectations between the auditor and the client. Once the client accepts the terms outlined in the engagement letter, the auditor can begin planning and performing the audit.

Question 8

Describe the three categories of safeguards to an auditor's independence.

Accepted Answer

The answer of Describe the three categories of safeguards to...

Question 9

Audit committees have been widely recommended as being an important mechanism for enhancing the external auditor's independence.What are the important characteristics of audit committees and discuss why these characteristics are considered so important to a committee's effective and efficient operation.

Accepted Answer

The answer of Audit committees have been widely recommended as...

Quiz 2: Ethics,legal Liability and Client Acceptance