Final answer:
The three PCAOB general standards include independence, adequate training and proficiency of the auditor, and due professional care. These standards ensure the quality and integrity of audits and the accuracy of financial reporting, as shown by the corporate governance failure in the Lehman Brothers case.
Step-by-step explanation:
The three PCAOB general standards are concerned with specific principles to ensure audits are conducted with quality and integrity. These standards include: a) Independence, which requires that auditors remain unbiased and free from conflicts of interest; b) adequate training and proficiency of the auditor, ensuring that auditors have the necessary knowledge and expertise to perform the audit; and c) due professional care, which requires auditors to be diligent and thorough in their work.
The significance of these standards is underscored through historical instances, such as in the case of Lehman Brothers. The failure of corporate governance, including the role of the auditing firm, highlighted the need for strict adherence to these standards to provide accurate financial information to investors and uphold the integrity of financial reporting.