The third general standard states due care is to be exercised in the performance of an

audit. This standard is generally interpreted to require

.
Critical review of work done at every level of supervision.
.

 
In any case in which the CPA or the CPA’s assistants are not qualified to perform the
work, a professional obligation exists to
Acquire the requisite knowledge and skills
 
 
With respect to the auditor’s planning of a year-end audit, which of the following
statements is always true?
The client’s audit committee should not be told of the specific audit procedures that were
performed.
 
Competence as a certified public accountant includes all of the following except
.
Possessing the ability to supervise and evaluate the quality of staff work.
 
The standard of due audit care requires the auditor to
Apply judgment in a conscientious manner, carefully weighing the relevant factors before
reaching a decision.
 
 
The first standard of fieldwork, which states that the work is to be adequately planned,
and assistants, if any, are to be properly supervised, recognizes that
Acceptance of an audit engagement after the close of the client's fiscal year is generally not
permissible.
 
The third general standards states that due care is to be exercised in the performance
of the examination. This standard should be interpreted to mean that a CPA who
undertakes an engagement assumes a duty to perform.
As a professional possessing the degree of skill commonly possessed by others in the field.
 

Assume that you are analyzing relationships for your firm to identify situations in
which an auditor’s independence may be impaired. For each of the following
numbered situations, determine whether the auditor (a covered member in the
situation)is considered to be independent. If the auditor’s independence would not be
impaired select NO . If the auditor’s independence would be impaired select YES.
Choose whether Yes or No.

 
The auditor is a member of a country club which is a client.
No
 
 
The auditor has an immaterial, indirect financial interest in the client.
No
 
 
The auditor is a co-signer of a client’s checks.
Yes
 
The auditor owns a large block of stock in a client but has placed it in a blind trust.

Yes
 
The auditor placed her checking account in a bank which is her client. The account is
fully insured by a federal agency.
Yes
 
 
The auditor joins, as an ordinary member, a trade association which is also a client.
No
 
 
The auditor is leasing part of his building to a client.
No
 
 
The client has not paid the auditor for services for the past two years.
Yes