Full Test Bank For
Principles of Auditing and Other Assurance Services 22nd Edition by Ray
Whittington, Kurt Pany
Chapter 1-21 Answers are at the End of Each Chapter
mathematics exams is problem-solving. Students must approach complex problems systematically, using appropriate
methods to reach the correct solution.Logical Reasoning: Mathematics is rooted in logical structures, and apply
mathematical principles in the correct sequence to reach a solution.Understanding of Concepts: Beyond solving problems,
mathematics exams test students’ conceptual understanding of core topics, such as algebra, geometry, calculus, or
statistics.3.4. Preparing for Mathematics ExamsMathematics
Chapter 1
Student name:
1) Accountants are regulated by a variety of organizations. Match the statements with
the most directly related organization:
● Accounting and Review Services Committee.
● American Institute of Certified Public Accountants.
● Auditing Standards Board.
● Federal Accounting Standards Advisory Board.
● Financial Accounting Standards Board.
● General Accounting Office.
● Government Accounting Standards Board.
● Public Company Accounting Oversight Board.
● Securities and Exchange Commission.
● State Boards of Accountancy.
testing different cognitive abilities, analytical skills, and subject-specific knowledge. In this essay, we will explore the nature of exams in business, law, and mathematics, their format, and how
they evaluate students’ comprehension and application of core concepts. We will also discuss the similarities and differences in these exams and how they prepare students for their respective
careers.________________________________________
Organizations may be used once, more than once, or not at all.
Statements Organizations
A. Develops accounting standards
for public and nonpublic
companies.
B. Develops accounting standards
for the U.S. Government.
C. Improves standards of financial
accounting for state and local
government entities.
D. Issues auditing standards for
public companies.
E. Issues CPA certificates.
F. Prepares the CPA exam.
Organizations: American Institute of Certified Public Accountants, Federal Accounting
, Standards Advisory Board, Financial Accounting Standards Board, Government Accounting
Standards Board, Public Company Accounting Oversight Board, State Boards of Accountancy.
mathematics exams is problem-solving. Students must approach complex problems systematically, using appropriate methods to reach the correct solution.Logical Reasoning: Mathematics is rooted in logical
structures, and apply mathematical principles in the correct sequence to reach a solution.Understanding of Concepts: Beyond solving problems, mathematics exams test students’ conceptual understanding
of core topics, such as algebra, geometry, calculus, or statistics.3.4. Preparing for Mathematics ExamsMathematics
2) The Sarbanes-Oxley Act of 2002 made significant reforms for public companies and
their auditors.
a. Describe the events that led up to the passage of the Act.
b. Describe the major changes made by the Act.
3) Many people confuse the responsibilities of the independent auditors and the
client's management with respect to audited financial statements.
a. Describe management's responsibility regarding audited financial statements.
b. Describe the independent auditors' responsibility regarding audited financial statements.
c. Evaluate the following statement: "If the auditors disagree with management
regarding an accounting principle used in the financial statements, the auditors should express
their views in the notes to the financial statements."
4) An investor is considering investing in one of two companies. The companies have very
similar reported financial position and results of operations. However, only one of the
companies has its financial statements audited.
a. Describe what creates the demand for an audit in this situation. Include a discussion
of how audited financial statements facilitate this investment transaction, and the effect of the
audit on business risk and information risk.
b. Identify the potential consequences to the company of not having its financial
statements audited.
5) A summary of findings rather than assurance is most likely to be included in a(n):
A) Agreed-upon procedures report.
B) Compilation report.
C) Audit report.
D) Review report.
, 6) The Statements on Auditing Standards have been issued by the:
A) Auditing Standards Board.
B) Financial Accounting Standards Board.
C) Securities and Exchange Commission.
D) Federal Bureau of Investigation.
mathematics exams is problem-solving. Students must approach complex problems systematically, using appropriate methods to reach the correct solution.Logical Reasoning: Mathematics is rooted in logical
structures, and apply mathematical principles in the correct sequence to reach a solution.Understanding of Concepts: Beyond solving problems, mathematics exams test students’ conceptual understanding
of core topics, such as algebra, geometry, calculus, or statistics.3.4. Preparing for Mathematics ExamsMathematics careers.________________________________________
7) The risk that a company’s financial statements will materially depart from
generally accepted accounting principles is referred to as:
A) Business Risk.
B) Information Risk.
C) Detection Risk.
D) Document Risk.
8) Historically, which of the following has the AICPA been most concerned with
providing?
A) Auditing standards.
B) Professional guidance for regulating financial markets.
C) Internal auditing standards.
D) Staff support to Congress.
9) The organization charged with protecting investors and the public by requiring
full disclosure of financial information by companies offering securities to the public is
the:
A) Auditing Standards Board.
B) Financial Accounting Standards Board.
C) Government Accounting Standards Boards.
D) Securities and Exchange Commission.
, 10) An engagement in which a CPA firm arranges for a critical review of its practices by
another CPA firm is referred to as a(n):
A) Peer Review Engagement.
B) Quality Control Engagement.
C) Quality Assurance Engagement.
D) Attestation Engagement.
mathematics exams is problem-solving. Students must approach complex problems systematically, using appropriate methods to reach the correct solution.Logical Reasoning: Mathematics is rooted in logical
structures, and apply mathematical principles in the correct sequence to reach a solution.Understanding of Concepts: Beyond solving problems, mathematics exams test students’ conceptual understanding
of core topics, such as algebra, geometry, calculus, or statistics.3.4. Preparing for Mathematics ExamsMathematics
11) The sequentially-numbered pronouncements issued by the Auditing Standards
Board over a period of years are known as:
A) Auditing Statements of Position (ASPs).
B) Accounting Series Releases (ASRs).
C) Statements on Auditing Standards (SASs).
D) Statements on Auditing Principles (SAPs).
12) Government Accountability Office (GAO):
A) is primarily concerned with rapid processing of all accounts payable incurred by the
federal government.
B) responsibilities include audits of government agencies.
C) is an organization of professional accountants whose primary interest is in the
effectiveness of presidential expenditures.
D) is primarily concerned with budgets and forecasts approved by the PCAOB.
13) The risk associated with survivability and profitability is referred to as:
Principles of Auditing and Other Assurance Services 22nd Edition by Ray
Whittington, Kurt Pany
Chapter 1-21 Answers are at the End of Each Chapter
mathematics exams is problem-solving. Students must approach complex problems systematically, using appropriate
methods to reach the correct solution.Logical Reasoning: Mathematics is rooted in logical structures, and apply
mathematical principles in the correct sequence to reach a solution.Understanding of Concepts: Beyond solving problems,
mathematics exams test students’ conceptual understanding of core topics, such as algebra, geometry, calculus, or
statistics.3.4. Preparing for Mathematics ExamsMathematics
Chapter 1
Student name:
1) Accountants are regulated by a variety of organizations. Match the statements with
the most directly related organization:
● Accounting and Review Services Committee.
● American Institute of Certified Public Accountants.
● Auditing Standards Board.
● Federal Accounting Standards Advisory Board.
● Financial Accounting Standards Board.
● General Accounting Office.
● Government Accounting Standards Board.
● Public Company Accounting Oversight Board.
● Securities and Exchange Commission.
● State Boards of Accountancy.
testing different cognitive abilities, analytical skills, and subject-specific knowledge. In this essay, we will explore the nature of exams in business, law, and mathematics, their format, and how
they evaluate students’ comprehension and application of core concepts. We will also discuss the similarities and differences in these exams and how they prepare students for their respective
careers.________________________________________
Organizations may be used once, more than once, or not at all.
Statements Organizations
A. Develops accounting standards
for public and nonpublic
companies.
B. Develops accounting standards
for the U.S. Government.
C. Improves standards of financial
accounting for state and local
government entities.
D. Issues auditing standards for
public companies.
E. Issues CPA certificates.
F. Prepares the CPA exam.
Organizations: American Institute of Certified Public Accountants, Federal Accounting
, Standards Advisory Board, Financial Accounting Standards Board, Government Accounting
Standards Board, Public Company Accounting Oversight Board, State Boards of Accountancy.
mathematics exams is problem-solving. Students must approach complex problems systematically, using appropriate methods to reach the correct solution.Logical Reasoning: Mathematics is rooted in logical
structures, and apply mathematical principles in the correct sequence to reach a solution.Understanding of Concepts: Beyond solving problems, mathematics exams test students’ conceptual understanding
of core topics, such as algebra, geometry, calculus, or statistics.3.4. Preparing for Mathematics ExamsMathematics
2) The Sarbanes-Oxley Act of 2002 made significant reforms for public companies and
their auditors.
a. Describe the events that led up to the passage of the Act.
b. Describe the major changes made by the Act.
3) Many people confuse the responsibilities of the independent auditors and the
client's management with respect to audited financial statements.
a. Describe management's responsibility regarding audited financial statements.
b. Describe the independent auditors' responsibility regarding audited financial statements.
c. Evaluate the following statement: "If the auditors disagree with management
regarding an accounting principle used in the financial statements, the auditors should express
their views in the notes to the financial statements."
4) An investor is considering investing in one of two companies. The companies have very
similar reported financial position and results of operations. However, only one of the
companies has its financial statements audited.
a. Describe what creates the demand for an audit in this situation. Include a discussion
of how audited financial statements facilitate this investment transaction, and the effect of the
audit on business risk and information risk.
b. Identify the potential consequences to the company of not having its financial
statements audited.
5) A summary of findings rather than assurance is most likely to be included in a(n):
A) Agreed-upon procedures report.
B) Compilation report.
C) Audit report.
D) Review report.
, 6) The Statements on Auditing Standards have been issued by the:
A) Auditing Standards Board.
B) Financial Accounting Standards Board.
C) Securities and Exchange Commission.
D) Federal Bureau of Investigation.
mathematics exams is problem-solving. Students must approach complex problems systematically, using appropriate methods to reach the correct solution.Logical Reasoning: Mathematics is rooted in logical
structures, and apply mathematical principles in the correct sequence to reach a solution.Understanding of Concepts: Beyond solving problems, mathematics exams test students’ conceptual understanding
of core topics, such as algebra, geometry, calculus, or statistics.3.4. Preparing for Mathematics ExamsMathematics careers.________________________________________
7) The risk that a company’s financial statements will materially depart from
generally accepted accounting principles is referred to as:
A) Business Risk.
B) Information Risk.
C) Detection Risk.
D) Document Risk.
8) Historically, which of the following has the AICPA been most concerned with
providing?
A) Auditing standards.
B) Professional guidance for regulating financial markets.
C) Internal auditing standards.
D) Staff support to Congress.
9) The organization charged with protecting investors and the public by requiring
full disclosure of financial information by companies offering securities to the public is
the:
A) Auditing Standards Board.
B) Financial Accounting Standards Board.
C) Government Accounting Standards Boards.
D) Securities and Exchange Commission.
, 10) An engagement in which a CPA firm arranges for a critical review of its practices by
another CPA firm is referred to as a(n):
A) Peer Review Engagement.
B) Quality Control Engagement.
C) Quality Assurance Engagement.
D) Attestation Engagement.
mathematics exams is problem-solving. Students must approach complex problems systematically, using appropriate methods to reach the correct solution.Logical Reasoning: Mathematics is rooted in logical
structures, and apply mathematical principles in the correct sequence to reach a solution.Understanding of Concepts: Beyond solving problems, mathematics exams test students’ conceptual understanding
of core topics, such as algebra, geometry, calculus, or statistics.3.4. Preparing for Mathematics ExamsMathematics
11) The sequentially-numbered pronouncements issued by the Auditing Standards
Board over a period of years are known as:
A) Auditing Statements of Position (ASPs).
B) Accounting Series Releases (ASRs).
C) Statements on Auditing Standards (SASs).
D) Statements on Auditing Principles (SAPs).
12) Government Accountability Office (GAO):
A) is primarily concerned with rapid processing of all accounts payable incurred by the
federal government.
B) responsibilities include audits of government agencies.
C) is an organization of professional accountants whose primary interest is in the
effectiveness of presidential expenditures.
D) is primarily concerned with budgets and forecasts approved by the PCAOB.
13) The risk associated with survivability and profitability is referred to as:
