Generally accented auditing standards are an auditor's guidelines for selecting and designing detailed audit procedures, and an auditor typically applies selected procedures to determine whether an entity's financial statements are presented in accordance with generally accepted accounting principles. Thus, generally accepted auditing standards, audit procedures, and generally accepted accounting principles are fundamentally related to one another in a financial statement audit.

Required:

1. What is the difference between:

(a) generally accepted auditing standards and

(b) auditing procedures?

2. Why is it important that an auditor's report state whether an entity's financial statements are presented "in conformity with generally accepted accounting principles"?