should be able to justify any departures.

Answer(s): D
Explanation:
Choice "d" is correct. The auditor is generally required to follow the guidance provided by the
Standards, and should be able to justify any departures.
Choice "a" is incorrect. On rare occasions, the auditor may depart from the guidance provided
by the SASs, but he or she must justify such departures.
Choice "b" is incorrect. Lack of familiarity with a SAS is not a valid reason for departing from its
guidance. The auditor is expected to have sufficient knowledge of the SASs to identify those
that are applicable to a given audit engagement.
Choice "c" is incorrect. The cost associated with following the guidance provided by a SAS is
not an acceptable reason for departing from its guidance.
QUESTION: 6
In the first audit of a new client, an auditor was able to extend auditing procedures to gather
sufficient evidence about consistency. Under these circumstances, the auditor should:

A. Not report on the client's income statement.
B. Not refer to consistency in the auditor's report.
C. State that the consistency standard does not apply.
D. State that the accounting principles have been applied consistently.

Answer(s): B
Explanation:
Choice "b" is correct. The auditor's standard report implies that the auditor is satisfied that the
comparability of financial statements between periods has not been materially affected by
changes in accounting principles and that such principles have been consistently applied
between or among periods. Since the auditor has gathered sufficient evidence about
consistency, no reference need be made in the report. Choice "a" is incorrect. If the auditor is
able to obtain sufficient evidence about consistency, the auditor may report on the entity's
financial statements. Choice "c" is incorrect. The consistency standard is one of the ten GAAS,
and it does apply to this audit. Choice "d" is incorrect. If the auditor is able to obtain sufficient
evidence about consistency, no mention of consistency need be made. Consistency is implied
in the standard report.
QUESTION: 7
The third general standard states that due care is to be exercised in the performance of an
audit. This standard is ordinarily interpreted to require:

A. Thorough review of the existing safeguards over access to assets and records.
B. Limited review of the indications of employee fraud and illegal acts.
C. Objective review of the adequacy of the technical training and proficiency of firm personnel.
D. Critical review of the judgment exercised at every level of supervision.

Answer(s): D
Explanation:
Choice "d" is correct. The third general standard of due care is ordinarily interpreted to require
critical review of the judgment exercised at every level of supervision, and the judgment

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