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The Professional Judgment in Context feature "Evidence-Related Findings in PCAOB Inspection Reports" presented at the beginning of the chapter provides excerpts of various PCAOB inspection reports issued in 2012 and 2011.Review the feature, consider the information you learned while reading this chapter, and answer the following questions.
a. What is sufficient appropriate evidence and how does it differ across clients? Can what is considered sufficient and appropriate differ across accounts within a specific client?
b. What are substantive analytical procedures, and when is evidence from these procedures appropriate?
c. What are the unique evidence challenges for accounts such as allowance for doubtful accounts? How is professional skepticism helpful when testing this type of account?
d. How could the use of a standardized audit program lead to some of the problems identified in the PCAOB inspection reports?
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