Paper details
Chapter 3 of the Yellow Book presents four general standards for government audits. These standards are:
(1) Independence; (2) professional judgment; (3) competence; and (4) quality control and assurance.
Write a summary of the key components of the four general standards. Your answer should include
discussion of the following topics and, for each, should show a typical or example application:
Independence: reasons for and meaning of independence
Types of impairments to independence
The effects of nonaudit services on auditors’ independence
Meaning of professional judgment
Elements of competence
Requirements for Continuing Professional Education (CPE)
Elements of quality control and assurance
Requirements for external peer review
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