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Answer the following based on a Financial Audit stand point.

1. Discuss the differences and similarities between the roles of accountants and auditors. What additional expertise must an auditor possess beyond that of an accountant? 2. There are five conditions that must be met before an auditor can issue a standard unqualified report for the audit of a private company. Please discuss each of these five conditions. 3. Identify and describe each of the four parts to the AICPA's Code of Professional Conduct. Also discuss which parts are officially enforceable and which are not. 4. Discuss each of the four defenses a CPA firm can normally use when facing legal claims by clients. Which of these defenses is ordinarily not available against third-party suits? 5. Discuss the actions an auditor should take when the auditor discovers an illegal act. 6. Discuss how each of the following influences the persuasiveness of evidence. a. Relevance b. Independence of provider c. Effectiveness of client's internal controls d. Auditor's direct knowledge e. Degree of objectivity 7. Discuss the essential activities involved in the initial planning of an audit. 8. Due to qualitative factors, certain types of misstatements are likely to be more important to users than others, even if the dollar amounts are the same. Identify two qualitative factors that might significantly affect an auditor's materiality judgment, and give an example of each. 9. During a financial statement audit of a non-public company, three steps must be completed by the auditor before he/she can conclude that control risk is low. Discuss these three steps. 10. List and briefly describe the three conditions for fraud arising from fraudulent financial reporting and misappropriation of assets as described in SAS No. 99

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