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    Audit: GAAS, working papers, accepting engagement

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    5. Generally accepted auditing standards recognize two categories of evidential matter: underlying accounting data and corroborating information. In making an audit in accordance with GAAS:
    a. corroborating information is always required, while underlying accounting data may be gathered under certain circumstances.
    b. underlying accounting data must always be gathered, while corroborating information need only be obtained when the accounting records are not reliable.
    c. both categories are required.
    d. the auditor may choose the category to use, and omit the other.
    e. neither category is required.

    6. Working papers provide all of the following except:
    a. means for coordinating the audit.
    b. the principal support for the financial statements.
    c. evidence that the audit was made in accordance with GAAS.
    d. the principal support for the auditor's report.
    e. a means for supervising the audit.

    7. In accepting an engagement, an auditor takes on professional responsibilities to:
    a. the public.
    b. the client.
    c. other members of the public accounting profession.
    d. the public, the client, and other members of the public accounting profession.
    e. the client and the public.

    8. In the communication with the predecessor auditor, the potential successor should make specific and reasonable inquiries regarding matters that may affect the decision to accept the engagement. Which of the following items is least likely to be included in the inquiries?
    a. the integrity of management
    b. disagreements with management about accounting matters
    c. specific areas of audit difficulty and cost
    d. the predecessor's understanding of the reasons for a change in auditors
    e. disagreements with management about auditing matters

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