4 Under Generally Accepted Auditing Standards GAAS Independe

4 Under Generally Accepted Auditing Standards (GAAS) Independence\', is required for a CPA to perform a(n) Financial Statement Attestation Assurance Yes Yes Yes No Yes No a. Yes No No d. No Which of the following best describes the relationship between auditing and attestation engagements? Auditing is a subset of attestation engagements that focuses on the certification of financial statements Attestation is a subset of auditing that provides lower assurance than that provided by an audit engagement c. Auditing is a subset of attestation engagements that focuses on providing clients with advice and decision support d. Attestation is a subset of auditing that improves the quality of information or its context for decision makers 6. Which response indicates the degree of assurance from highest to lowest provided by a CPA firm\'s service as relates to a client\'s financial statements? a. Financial statement audit; financial statement review; financial statement compilation b. Financial statement audit; financial statement compilation, financial statement review c. Financial statement consultation; financial statement review, financial statement audit d. Financial statement review; financial statement audit, financial statement compilation 7. A CPA is permitted to subordinate her or his professional judgment to Audit Clients Tax Clients Senior Staff Members Yes No No Yes Yes No No Yes Yes Yes No

Solution

4. Answer is a. Auditor needs to be independent for all the three as per

6. Degree of assurance shall be audit, review and compilation. Answer is A

7. A CPA is not allowed to subordinate his professional judgemetn to anyone. Thus answer is Option D