Question

The AICPA Principles Underlying a GAAS audit, include a requirement that:

a. Auditors only use CPAs on an engagement.
b. Management provides the auditors with unrestricted access to individuals within the entity from whom the
auditor determines it necessary to obtain audit evidence.
c. Auditors provide an opinion with limited assurance about whether the financial statements are free from
material misstatement.
d. Auditors maintain objective skepticism when performing the audit.

Answer 1

The AICPA Principles Underlying a GAAS audit require management to provide auditors with unrestricted access to individuals from whom the auditor needs to obtain audit evidence.

Step-by-step explanation:

The subject of your question relates to the auditing principles under the American Institute of Certified Public Accountants (AICPA). Specifically, the question refers to elements of the Generally Accepted Auditing Standards (GAAS). The option that best describes the AICPA principles underlying a GAAS audit is that:

b. Management provides the auditors with unrestricted access to individuals within the entity from whom the auditor determines it necessary to obtain audit evidence.

To elaborate, this requirement is essential for auditors to be able to perform an effective and thorough audit. They need complete access to records, personnel, and other resources within the company to gather adequate evidence for their evaluation of the company's financial statements. While the other options mention valid points about auditing, option b is specifically addressing a principle, which is part of the standards an auditor must follow to comply with GAAS. It's also important to note that auditors should maintain professional skepticism, a different concept from the option provided, which was objective skepticism.