Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the CPA Auditing and Attestation Exam. Leverage comprehensive materials, flashcards, and detailed explanations for each question. Master essential auditing concepts and techniques with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the auditor's responsibility regarding Statements on Auditing Standards?

To follow guidance unless it is not cost-effective.
To follow the Standards, justifying any departures.
To use only the guidance they are familiar with.
To always follow the Standards without exception.

The correct answer is: To follow the Standards, justifying any departures.

The auditor's responsibility regarding Statements on Auditing Standards is accurately reflected in the notion of following the Standards while being prepared to justify any departures from them. This approach acknowledges that while adherence to established auditing standards is paramount for maintaining the integrity and reliability of the audit process, there may be exceptional circumstances—such as unique client situations or new developments in practices—that could warrant deviations. In such cases, it is essential for auditors to thoroughly document and justify their reasons for not following the specific guidance. This ensures that the audit remains transparent and accountable, providing a clear rationale for the decisions made during the audit process. Such justification helps maintain professional integrity and enables auditors to demonstrate compliance with the spirit, if not the letter, of the Standards. This understanding highlights the importance of both adhering to standardized practices and maintaining the flexibility required to address unique audit circumstances effectively.