Question

QUESTION 7 The internal controls of an entity are the policies and procedures, which the entity has implemented to provide reasonable assurance that the entity's objectives are being achieved. True False QUESTION 8 The three generally accepted auditing standards classified as general standards can be described as criteria for the A. Content of the auditor's report, study of internal control, and planning. B. Competence, independence, and professional care of individuals performing the audit. C. Content of the financial statements and related footnote disclosures and the consistency standard. D. Planning and supervision of the audit engagement. QUESTION

principles of auditing
chapter 2

Answer 1

7. False.

Internal controls are policies and procedures put in place by management to ensure that, among other things, the company’s financial statements are reliable. The internal control of an entity does not provide reasonable assurance that the entity the entity's objective are being achieved.

8. Correct answer is B.: Competence, independence, and professional care of individuals performing audit

General Standards are following :

1. The auditor must have adequate technical training and proficiency to perform the audit. - COMPETENCE
2. The auditor must maintain independence in mental attitude in all matters relating to the audit. - INDEPENDENCE
3. The auditor must exercise due professional care in the performance of the audit and the preparation of the auditor's report. - PROFESSIONAL CARE