Question

6. Auditing standards for public companies are established by the (A) SEC. B) FASB. C) PCAOB D) IRS. 7. When CPAs are able to maintain their actual independence, it is referred to as independence in (A) conduct. B) appearance. C) fact D) total. 2/5 8. If an auditor fails to fulfill a certain requirement in the contract, they may be guilty A) contract fraud. B) breach of contract. C) constructive fraud. D) criminal neglect. 9. Which of the following most accurately describes constructive fraud? A) absence of reasonable care B) lack of slight care C) scienter D) extreme or unusual negligence without the intent to deceive 10. Which of the following assertions is described as "this assertion addresses whether transactions that should be included in the financial statements are in fact included A) occurrence B) completeness C) rights and obligations D) existence 11. Analytical procedures must be used during which phase(s) of the audit? Planning Yes Testing Yes No Yes No Yes Completion Yes Yes No No No No

need # 6,7,9 need correct answer with explanations

Answer 1

6 c

Public company accounting oversight board

In the United States, the Public Company Accounting Oversight Board develops standards (Auditing Standards or AS) for publicly traded companies since the 2002 passage of the Sarbanes-Oxley Act

7 c

There are 2 types of independence

Independence in fact

Perceived independence

Actual independence is considered as the independence in fact

Fact means which supports your independence stand

9 d

Constructive fraud is a legal fiction describing a situation where a person or entity gained an unfair advantage over another by deceitful or unfair methods. Intent does not need to be shown as in the case of actual fraud