Answer the following questions:
(1) Several federal laws require external audits to protect the public. Should federal laws also require internal audits within a public corporation? Provide an example to support your response.
(2) Professional auditing standards provide for an unqualified audit report with three standard paragraphs. Briefly describe those paragraphs. Which is the most important? Why?
(3) In terms of professional standards, when is a disclaimer more appropriate than an audit opinion?
(4) Explain the basis for your example. Professional standards require independence in fact and appearance in regards to assigning auditors to engagements. Briefly define the terms in fact and appearance. What are the ethical implications and rationale for these auditing procedures?