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CMA Intermediate · Corporate Accounting and Auditing · Brief Introduction to Auditing Standards

Which of the following best describes how SA 200 characterises the relationship between the SAs taken together and the auditor's overall objectives, and the kinds of matters the SAs address?

Taken together, the SAs provide the standards for the auditor's work in fulfilling the overall objectives of the auditor. They cover both the auditor's general responsibilities and further considerations on applying those responsibilities to specific topics, and are not limited to listed entities.

  1. AThe SAs apply only to listed entities, and deal solely with specific topics
  2. BThe SAs together provide the standards for the auditor's work in fulfilling the overall objectives, dealing with general responsibilities and further considerations for applying them to specific topicsCorrect
  3. CThe SAs replace the financial reporting framework used by management in preparing statements
  4. DThe SAs deal only with general responsibilities, leaving specific topics to the audit firm's policy

Explanation

SA 200 states the SAs taken together provide standards for the auditor's work in fulfilling the overall objectives. They deal with general responsibilities and further considerations in applying those to specific topics. Option D is wrong because specific topics are covered within the SAs themselves.

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