Solution Manual for Principles of
Auditing and Other Assurance Services
22nd Edition by Ray Whittington, Kurt
Pany, All Chapters 1 - 21, Complete
Newest Version With Questions and
Correct Answers Graded A+ Guaranteed
Pass
Describe what is meant by the cycle approach to
auditing. - ANSWER-The cycle approach is a method of
dividing the audit such that closely related types of
transactions and account balances are included in the
same cycle.
,What are the advantages of dividing the audit into
different cycles? - ANSWER-1. To divide the audit into
more manageable parts.
2. To assign tasks to different members of the audit
team.
3.To keep closely related parts of the audit together.
State the objective of the audit of financial statements. In
general terms, how do auditors meet that objective?
The auditor's objective of the audit of the financial
statements is the _____________
______________________________ of the financial
position, results of operations, and cash flows in
conformity with applicable accounting standards. The
auditor meets that objective by
______________________________________
_________________________________________
whether management's _____________________
regarding the financial statements are fairly stated. -
ANSWER-1. expression of an opinion on the fairness
,2. accumulating sufficient appropriate evidence to
determine
3. assertions
Describe management's responsibility for the financial
statements. - ANSWER-Management's responsibility is to
adopt sound accounting policies, maintain adequate
internal control, and make fair representations in the
financial statements.
Do you believe the CEO and CFO of a public company
perceive an even greater responsibility as a result of the
Sarbanes-Oxley Act requirement to certify the financial
statements submitted to the SEC?
Requiring the CEO and CFO of a public company to
personally certify and provide assurance on the financial
statements and internal controls is likely to result in
________________________
______________________________________________
______________________________________.
, The Sarbanes-Oxley Act ______
______________________________________________
______________________________________
for anyone who knowingly falsely certifies those
statements. - ANSWER-1. them taking their responsibility
more seriously and taking additional precautions to gain
comfort with the fairness of the representations.
2. can impose criminal penalties, including significant
monetary fines or imprisonment for up to 20 years
Distinguish between the terms errors and fraud. What is
the auditor's responsibility for finding each? - ANSWER-
An error is an unintentional misstatement of the financial
statements. Fraud represents an intentional
misstatement. The auditor is responsible for obtaining
reasonable assurance that material misstatements in the
financial statements are detected, whether those
misstatements are due to errors or fraud.
Explain the auditor's responsibility to consider
compliance with laws and regulations. How does this
responsibility differ for laws and regulations that have a
Auditing and Other Assurance Services
22nd Edition by Ray Whittington, Kurt
Pany, All Chapters 1 - 21, Complete
Newest Version With Questions and
Correct Answers Graded A+ Guaranteed
Pass
Describe what is meant by the cycle approach to
auditing. - ANSWER-The cycle approach is a method of
dividing the audit such that closely related types of
transactions and account balances are included in the
same cycle.
,What are the advantages of dividing the audit into
different cycles? - ANSWER-1. To divide the audit into
more manageable parts.
2. To assign tasks to different members of the audit
team.
3.To keep closely related parts of the audit together.
State the objective of the audit of financial statements. In
general terms, how do auditors meet that objective?
The auditor's objective of the audit of the financial
statements is the _____________
______________________________ of the financial
position, results of operations, and cash flows in
conformity with applicable accounting standards. The
auditor meets that objective by
______________________________________
_________________________________________
whether management's _____________________
regarding the financial statements are fairly stated. -
ANSWER-1. expression of an opinion on the fairness
,2. accumulating sufficient appropriate evidence to
determine
3. assertions
Describe management's responsibility for the financial
statements. - ANSWER-Management's responsibility is to
adopt sound accounting policies, maintain adequate
internal control, and make fair representations in the
financial statements.
Do you believe the CEO and CFO of a public company
perceive an even greater responsibility as a result of the
Sarbanes-Oxley Act requirement to certify the financial
statements submitted to the SEC?
Requiring the CEO and CFO of a public company to
personally certify and provide assurance on the financial
statements and internal controls is likely to result in
________________________
______________________________________________
______________________________________.
, The Sarbanes-Oxley Act ______
______________________________________________
______________________________________
for anyone who knowingly falsely certifies those
statements. - ANSWER-1. them taking their responsibility
more seriously and taking additional precautions to gain
comfort with the fairness of the representations.
2. can impose criminal penalties, including significant
monetary fines or imprisonment for up to 20 years
Distinguish between the terms errors and fraud. What is
the auditor's responsibility for finding each? - ANSWER-
An error is an unintentional misstatement of the financial
statements. Fraud represents an intentional
misstatement. The auditor is responsible for obtaining
reasonable assurance that material misstatements in the
financial statements are detected, whether those
misstatements are due to errors or fraud.
Explain the auditor's responsibility to consider
compliance with laws and regulations. How does this
responsibility differ for laws and regulations that have a
