AICPA CPA-TEST Online Practice Questions and Exam Preparation

AICPA CPA-TEST Online Questions & Answers

• Question 1241:

  Which of the following standards requires a critical review of the work done and the judgment exercised by those assisting in an audit at every level of supervision?

  A. Proficiency.
  B. Audit risk.
  C. Inspection.
  D. Due care.
  D. Due care.

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  Choice "d" is correct. The third general standard is: "The auditor must exercise due professional care in the planning and performance of the audit and the preparation of the report." This standard is interpreted to require a critical review of the work performed and the judgment exercised at every level of supervision. Choice "a" is incorrect. Proficiency relates to the first general standard (technical training and proficiency of an auditor). Choice "b" is incorrect. Audit risk and materiality underlie the application of all the standards of fieldwork and reporting, but are not standards themselves. Choice "c" is incorrect. Inspection pertains to the audit evidence standard, which is the third standard of fieldwork.