Problem 1: Several federal laws require external audits to protect the public. Should federal laws also require internal audits within a public corporation? Please provide an example.
Problem 2: How could federal laws be improved to regulate the quality and effectiveness of financial audits?
Problem 3: Professional auditing standards provide for an unqualified audit report with three standard paragraphs. Please describe those paragraphs. Which one is the most important and why?
Problem 4: In terms of professional standards, when is a disclaimer more appropriate than an audit opinion? Please explain the basis for your example.
Problem 5: Please define the terms in fact and appearance. What are the ethical implications and rationale for these auditing procedures?