students followed the CPA’sinstructions and after two weeks gave the CPA the financial statements which did not include any footnotes.

students followed the CPA’s instructions and after two weeks gave the CPA the financial statements which did not include any footnotes. The CPA reviewed the statements and prepared an unmodified auditor’s report. The report did not refer to GAAP or to the consistent application of GAAP. 

Briefly describe at least three principles underlying AICPA auditing standards and indicate how the actions of the CPA resulted in a failure to comply with each principle. 

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