ACC 410 Week 1 Assignment Generally Accepted Auditing Standa

ACC 410 Week 1 Assignment Generally Accepted Auditing Standards
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 In this file ACC 410 Week 1 Assignment Generally Accepted Auditing Standards there is a review of the following parts:


 General Standards
 Standards of Field Work
 Standards of Reporting

Business - Accounting
 Generally Accepted Auditing Standards

 Complete problem below and submit to your instructor. Write under the generally accepted auditing standards column the specific standard that was violated and how the action of Jones resulted in a failure to comply with each standard. Organize your answer as shown below; specifically with a column for the standard that was violated and a column for the required action. The paper should be 2-3 pages.


 Problem:

 John Clinton, owner of Clinton Company, applied for a bank loan and was informed by the banker that audited financial statements of the business had to be submitted before the bank could consider the loan application. Clinton then retained Arthur Jones, CPA, to perform an audit. Clinton informed Jones that audited financial statements were required by the bank and that the audit must be completed within three weeks. Clinton also promised to pay Jones a fixed fee plus a bonus if the bank approved the loan. Jones agreed and accepted the engagement.

 The first step taken by Jones was to hire two accounting students to conduct the audit. He spent several hours telling them exactly what to do. Jones told the students not to spend time reviewing controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that support Clinton Company’s financial statements. The students followed Jone’s instructions and after two weeks gave Jones the financial statements, which did not include any notes. Jones reviewed the statements and prepared an unqualified audit report. The report, however, did not refer to generally accepted accounting principles.

 Required:

 List on the left side of a sheet of paper the generally accepted auditing standards that were violated by Jones, and indicate how the actions of Jones resulted in a failure to comply with each standard. Organize your answers as follows:





 Generally Accepted Auditing Standards



 Actions by Jones Resulting in Failure to Comply with Generally Accepted Auditing Standards





 General Standards









 (1) The auditor must have adequate technical training and proficiency to perform the audit.



 (1)






Make sure to rely on the notes of others. You may think that the person you are getting them from is a solid student, but there is no telling whether that person was an exceptional note taker. You may receive partial information, or the note taker may have used personal coding that only he/she will understand.