Question

Question 3: (C1&C2)

Indicate the category and the standard for each statement below:

1. The auditor expresses an opinion on the financial statements.
2. The client’s notes to the financial statements contain all essential data.
3. The auditor is careful in doing the audit.
4. A predesigned schedule is followed during the audit.
5. The auditor is objective and unbiased in performing the audit.
6. The client used the same accounting principles this year as last year.
7. The auditor is an accounting graduate with experience.
8. The audit produced all evidence needed to reach a conclusion about the financial statements.

No.	Type of category	Type of standard
1
2
3
4
5
6
7
8

Answer 1

Statement	Type of category	Type of standard	Description of Standard
The auditor expresses an opinion on the financial statements.	Standards of Reporting	Standard 4	Audit report containing an expression of opinion regarding the financial statements.
The client’s notes to the financial statements contain all essential data.	Standards of Field Work	Standard 3	The evidence gathered during the audit is appropriate and sufficient to evaluate management’s assertions on the financial statements.
1. The auditor is careful in doing the audit.	General standards	Standard 3	Due professional care is to be exercised in the performance of the audit and the preparation of the report.
A predesigned schedule is followed during the audit.	Standards of Field Work	Standard 1	The work is to be adequately planned and assistants are to be properly supervised.
The auditor is objective and unbiased in performing the audit.	General standards	Standard 2	In all matters an independence of both fact and appearance should be present in mental attitude of the auditor or auditors.
The client used the same accounting principles this year as last year.	Standards of Reporting	Standard 2	The report shall identify those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period.
The auditor is an accounting graduate with experience.	General standards	Standard 1	The audit is to be performed by a person or persons having adequate technical training and proficiency as an auditor.
The audit produced all evidence needed to reach a conclusion about the financial statements.	Standards of Reporting	Standard 3	Informative disclosures in the financial statements are to be regarded as reasonably adequate unless otherwise stated in the report.