Identify the Two Ethical Standards That Have the Most Direct

Question

Examlex · Accepted Answer

The Answer is The two important ethical areas that have a direct affect on the conduct of an audit are: (i) objectivity and independence and (ii) general standards of competence and due professional care.
The audit enhances the reliability of financial statements to the extent that the following joint probability is nonzero:
P(reporting a MM| Detection of a MM)*P(detecting a MM| MM exists).
Where MM = material misstatement
Competence and due professional care enable the auditor to approach the truth which increases the probability of the second term. Objectivity, integrity and independence enable the auditor to report the truth thus increasing the first term.

Identify the Two Ethical Standards That Have the Most Direct

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Correct Answer:
Verified

Identify the Two Ethical Standards That Have the Most Direct

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified