Written Assignment 6
Chapter 3 of 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
*** ANSWER SHOULD BE IN DEPTH
