Which of the following accurately depicts the auditor\'s responsibility with res

Question

Which of the following accurately depicts the auditor's responsibility with respect to Statements on Auditing Standards?

1. The auditor is required to follow the guidance provided by the standards, without exception.

2. The auditor is generally required to follow the guidance provided by standards with which he or she is familiar, but will not be held responsible for departing from provisions of which he or she was unaware.

3. The auditor is generally required to follow the guidance provided by the standards, unless following such guidance would result in an audit that is not cost-effective.

4. The auditor is generally required to follow the guidance provided by the standards and should be able to justify any departures.

Explanation / Answer

4. The auditor is generally required to follow the guidance provided by the standards and should be able to justify any departures - accurately depicts the auditor's responsibility with respect to Statements on Auditing Standards.

Chice 1 is incorrect because the auditors are allowed to departure from the guideleines of the applicable accounting standard on rare occassions probvided he/she can justify that departure.

Choice 2 is incorrect because, auditors are expected to have expertise knowledge about the provisions and their applicability of the accounting standards which are applicable to their audit work.

Choice 3 is incorrect because cost-effectiveness is not at all a justified reason for departure from the applicability of the accounting standards.

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