The correct answer is “b) acts to be performed.” Auditing standards and audit procedures are distinct concepts within the field of auditing. Auditing standards provide a framework and guidelines for auditors to follow, while audit procedures are the specific acts or steps that auditors perform to gather evidence and reach conclusions.

Here’s a detailed explanation of why the answer is correct and why the other options are not:

b) Acts to be performed (Correct Answer):

Audit procedures refer to the specific actions or steps that auditors need to undertake during the audit engagement. These procedures are designed to gather evidence and verify the accuracy and completeness of the financial information under examination.

Audit procedures are crucial for the audit process as they guide auditors on how to obtain the necessary information to form an opinion on the financial statements. These procedures encompass a wide range of activities, including examining documents, performing tests, making inquiries, and other actions that are performed to assess the client’s financial records.

Audit procedures are tailored to the specific risks and characteristics of the audit engagement. They can include substantive procedures, which are designed to detect material misstatements in the financial statements, and tests of controls, which are focused on assessing the effectiveness of the client’s internal controls.

The nature, timing, and extent of these procedures are determined based on the auditor’s judgment and the auditing standards in place.

Now, let’s discuss why the other options are not correct:

a) Audit assumptions:

Audit assumptions are not the same as audit procedures. Audit assumptions refer to the fundamental principles and assumptions underlying the audit process, such as the going concern assumption, materiality, and the auditor’s independence.

These assumptions provide the foundation for the audit, guiding the auditor’s approach and mindset, but they are not the specific actions taken during the audit process.

c) Quality criteria:

Quality criteria are standards that are used to assess the quality of the audit engagement and the resulting audit report. They are related to the overall performance and quality of the audit but do not constitute the specific acts or steps to be performed.

Quality criteria might include factors like audit documentation, professional judgment, and adherence to auditing standards, which help ensure that the audit process is conducted effectively and that the audit report is reliable.

d) Methods of work:

Methods of work refer to the approaches and techniques that auditors use to conduct their audit procedures. These methods may include sampling techniques, data analysis tools, and other strategies employed during the audit.

While methods of work are closely related to audit procedures, they are not synonymous. Methods of work are tools and techniques used to implement audit procedures effectively.

In summary, audit procedures are the specific actions and steps that auditors perform during the audit engagement to gather evidence and form an opinion on the financial statements. They are tailored to the specific characteristics and risks of the audit and play a crucial role in the audit process.

Auditing standards, on the other hand, provide the overall framework and guidelines for how audits should be conducted, including principles, concepts, and requirements that auditors should follow. The correct answer, “acts to be performed,” accurately reflects the distinction between audit procedures and auditing standards.