Question

"identify each of the principles underlying aicpa auditing standards in the first column by selecting the letters corresponding to each of the principles​ (from the list of possible principles given​ below). use the second column to identify by roman numeral​ (from the list of failures given​ below) how the​ action(s) of holmes resulted in a failure to comply with each standard you selected in the first column"

Answer 1

Explanation:

Ray, the owner of a small corporation, ordered CPA Holmes to perform a record audit. Ray told Holmes that a loan application should include a prompt analysis of the audited financial statements of a bank. Holmes acknowledged the agreement unanimously and decided that an auditor's report should be given within 3 weeks. If the loan was granted, Ray accepted to pay Holmes a fixed fee plus a bonus.

Two accountant graduates were employed by Holmes to perform the audit and spent several hours saying exactly what to do. Holmes told the students to concentrate instead on providing accurate statistical facts in the documents and summing up a date that confirms Ray's financial statements that do not include footnotes, instead of testing the controls.

Holmes checked the documents and produced a report of the auditor without qualification. The article applies neither to the GAAPs nor to their consistent application.