Part 1 ( minimum 250 Words):
The Yellow Book presents four general standards for government audits. These standards are: (1) Independence; (2) professional judgment; (3) competence; and (4) quality control and assurance.
Write a summary of the key components of the four general standards. Your answer should include discussion of the following topics and, for each, should show a typical or example application:
Independence: reasons for and meaning of independence
Types of impairments to independence
The effects of nonaudit services on auditors independence
Meaning of professional judgment
Elements of competence
Requirements for Continuing Professional Education (CPE)
Elements of quality control and assurance
Requirements for external peer review
Part 2 (minimum 250 words):
Complete the following items.
1- Write brief summary of the ISA 265: Communicating deficiencies in internal control to those charged with governance and management. Your answer should include discussion of the following:
Classification and definitions of control deficiencies.
Auditors responsibilities in detecting and reporting internal control deficiencies
Key factors used to determine internal control significant deficiencies
Key elements of auditors written communication of significant deficiencies
2- Write brief summary of the ISA 240: The auditors responsibilities relating to fraud in an audit of financial statements. Your answer should include discussion of the following:
Characteristics of fraud
Managements responsibilities for preventing and detecting fraud
Auditors responsibilities for detecting fraud
Audit procedures required for auditing fraud in the financial statements
