Created cBy:cA cSolution
Test Bank for Principles of Auditing and Other Ass
c c c c c c c c
urance Services 22nd Edition by Ray Whittington,
c c c c c c c
Kurt Pany 2024 A+
c c c
Answerscarecat cthecend cof ceachcchaptercChapterc1
Student cname:
1)
Accountantscarecregulated cbycacvarietycof corganizations.cMatchcthecstatementscwithcthecmost
directlycrelated corganization:
c
● Accountingcand cReview cServicescCommittee.
● AmericancInstitutecof cCertified cPubliccAccountants.
● AuditingcStandardscBoard.
● FederalcAccountingcStandardscAdvisorycBoard.
● FinancialcAccountingcStandardscBoard.
● GeneralcAccountingcOffice.
● Government cAccountingcStandardscBoard.
● PubliccCompanycAccountingcOversight cBoard.
● Securitiescand cExchangecCommission.
● StatecBoardscof cAccountancy.
Organizationscmaycbecused conce,cmorecthanconce,corcnot cat call.
Statements Organizations
A.cDevelopscaccountingcstandards
forcpubliccand cnonpublicccompanies.
B.cDevelopscaccountingcstandardscforcthecU.S.cGovernment.
C.cImprovescstandardscof cfinancialcaccountingcforcstatecand clocal
government centities.
D.cIssuescauditingcstandardscforcpublicccompanies.
E.cIssuescCPA ccertificates.
F.cPreparescthecCPA cexam.
A+ Pagec1
,Created cBy:cA cSolution
Organizations:cAmericancInstitutecof cCertified cPubliccAccountants,cFederalcAccountingcStandardsc
AdvisorycBoard,cFinancialcAccountingcStandardscBoard,cGovernment cAccountingcStandardscBoar
d,cPubliccCompanycAccountingcOversight cBoard,cStatecBoardscof cAccountancy.
c
2) ThecSarbanes-
OxleycAct cof c2002cmadecsignificant creformscforcpublicccompaniescand ctheircauditors.
a. Describectheceventscthat cled cupctocthecpassagecof cthecAct.
b. DescribecthecmajorcchangescmadecbycthecAct.
3)
Manycpeoplecconfusecthecresponsibilitiescof cthecindependent cauditorscand cthecclient'scmanag
ement cwithcrespect ctocaudited cfinancialcstatements.
a. Describecmanagement'scresponsibilitycregardingcaudited cfinancialcstatements.
b. Describecthecindependent cauditors'cresponsibilitycregardingcaudited cfinancialcstatements.
c.
Evaluatecthecfollowingcstatement:c"If cthecauditorscdisagreecwithcmanagement cregardingcanca
ccountingcprinciplecused cincthecfinancialcstatements,cthecauditorscshould cexpressctheircviewscincthecn
otesctocthecfinancialcstatements."
4)
Ancinvestorciscconsideringcinvestingcinconecof ctwoccompanies.cTheccompanieschavecverycsi
milarcreported cfinancialcpositioncand cresultscof coperations.cHowever,conlyconecof ctheccompanieschas
itscfinancialcstatementscaudited.
c
a.
Describecwhat ccreatescthecdemand cforcancaudit cincthiscsituation.cIncludecacdiscussioncof chowc
audited cfinancialcstatementscfacilitatecthiscinvestment ctransaction,cand ctheceffect cofcthecaudit concbusi
nesscriskcand cinformationcrisk.
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,Created cBy:cA cSolution
b.
Identifycthecpotentialcconsequencesctoctheccompanycof cnot chavingcitscfinancialcstatementscau
dited.
5) A csummarycof cfindingscrathercthancassuranceciscmost clikelyctocbecincluded cinca(n):
A) Agreed-uponcprocedurescreport.
B) Compilationcreport.
C) Audit creport.
D) Review creport.
c
6) ThecStatementsconcAuditingcStandardschavecbeencissued cbycthe:
A) AuditingcStandardscBoard.
B) FinancialcAccountingcStandardscBoard.
C) Securitiescand cExchangecCommission.
D) FederalcBureaucof cInvestigation.
7)
Thecriskcthat caccompany’scfinancialcstatementscwillcmateriallycdepart cfromcgenerallycaccept
ed caccountingcprinciplesciscreferred ctocas:
A) BusinesscRisk.
B) InformationcRisk.
C) DetectioncRisk.
D) Document cRisk.
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, Created cBy:cA cSolution
8) Historically,cwhichcof cthecfollowingchascthecAICPA cbeencmost cconcerned cwithcproviding?
A) Auditingcstandards.
B) Professionalcguidancecforcregulatingcfinancialcmarkets.
C) Internalcauditingcstandards.
D) Staff csupport ctocCongress.
9)
Thecorganizationccharged cwithcprotectingcinvestorscand cthecpubliccbycrequiringcfullcdisclosu
recof cfinancialcinformationcbyccompaniescofferingcsecuritiesctocthecpublicciscthe:
A) AuditingcStandardscBoard.
B) FinancialcAccountingcStandardscBoard.
C) Government cAccountingcStandardscBoards.
D) Securitiescand cExchangecCommission.
c
10)
Ancengagement cincwhichcacCPA cfirmcarrangescforcaccriticalcreview cof citscpracticescbycanothe
rcCPA cfirmciscreferred ctocasca(n):
A) PeercReview cEngagement.
B) QualitycControlcEngagement.
C) QualitycAssurancecEngagement.
D) AttestationcEngagement.
A+ Pagec4
Test Bank for Principles of Auditing and Other Ass
c c c c c c c c
urance Services 22nd Edition by Ray Whittington,
c c c c c c c
Kurt Pany 2024 A+
c c c
Answerscarecat cthecend cof ceachcchaptercChapterc1
Student cname:
1)
Accountantscarecregulated cbycacvarietycof corganizations.cMatchcthecstatementscwithcthecmost
directlycrelated corganization:
c
● Accountingcand cReview cServicescCommittee.
● AmericancInstitutecof cCertified cPubliccAccountants.
● AuditingcStandardscBoard.
● FederalcAccountingcStandardscAdvisorycBoard.
● FinancialcAccountingcStandardscBoard.
● GeneralcAccountingcOffice.
● Government cAccountingcStandardscBoard.
● PubliccCompanycAccountingcOversight cBoard.
● Securitiescand cExchangecCommission.
● StatecBoardscof cAccountancy.
Organizationscmaycbecused conce,cmorecthanconce,corcnot cat call.
Statements Organizations
A.cDevelopscaccountingcstandards
forcpubliccand cnonpublicccompanies.
B.cDevelopscaccountingcstandardscforcthecU.S.cGovernment.
C.cImprovescstandardscof cfinancialcaccountingcforcstatecand clocal
government centities.
D.cIssuescauditingcstandardscforcpublicccompanies.
E.cIssuescCPA ccertificates.
F.cPreparescthecCPA cexam.
A+ Pagec1
,Created cBy:cA cSolution
Organizations:cAmericancInstitutecof cCertified cPubliccAccountants,cFederalcAccountingcStandardsc
AdvisorycBoard,cFinancialcAccountingcStandardscBoard,cGovernment cAccountingcStandardscBoar
d,cPubliccCompanycAccountingcOversight cBoard,cStatecBoardscof cAccountancy.
c
2) ThecSarbanes-
OxleycAct cof c2002cmadecsignificant creformscforcpublicccompaniescand ctheircauditors.
a. Describectheceventscthat cled cupctocthecpassagecof cthecAct.
b. DescribecthecmajorcchangescmadecbycthecAct.
3)
Manycpeoplecconfusecthecresponsibilitiescof cthecindependent cauditorscand cthecclient'scmanag
ement cwithcrespect ctocaudited cfinancialcstatements.
a. Describecmanagement'scresponsibilitycregardingcaudited cfinancialcstatements.
b. Describecthecindependent cauditors'cresponsibilitycregardingcaudited cfinancialcstatements.
c.
Evaluatecthecfollowingcstatement:c"If cthecauditorscdisagreecwithcmanagement cregardingcanca
ccountingcprinciplecused cincthecfinancialcstatements,cthecauditorscshould cexpressctheircviewscincthecn
otesctocthecfinancialcstatements."
4)
Ancinvestorciscconsideringcinvestingcinconecof ctwoccompanies.cTheccompanieschavecverycsi
milarcreported cfinancialcpositioncand cresultscof coperations.cHowever,conlyconecof ctheccompanieschas
itscfinancialcstatementscaudited.
c
a.
Describecwhat ccreatescthecdemand cforcancaudit cincthiscsituation.cIncludecacdiscussioncof chowc
audited cfinancialcstatementscfacilitatecthiscinvestment ctransaction,cand ctheceffect cofcthecaudit concbusi
nesscriskcand cinformationcrisk.
A+ Pagec2
,Created cBy:cA cSolution
b.
Identifycthecpotentialcconsequencesctoctheccompanycof cnot chavingcitscfinancialcstatementscau
dited.
5) A csummarycof cfindingscrathercthancassuranceciscmost clikelyctocbecincluded cinca(n):
A) Agreed-uponcprocedurescreport.
B) Compilationcreport.
C) Audit creport.
D) Review creport.
c
6) ThecStatementsconcAuditingcStandardschavecbeencissued cbycthe:
A) AuditingcStandardscBoard.
B) FinancialcAccountingcStandardscBoard.
C) Securitiescand cExchangecCommission.
D) FederalcBureaucof cInvestigation.
7)
Thecriskcthat caccompany’scfinancialcstatementscwillcmateriallycdepart cfromcgenerallycaccept
ed caccountingcprinciplesciscreferred ctocas:
A) BusinesscRisk.
B) InformationcRisk.
C) DetectioncRisk.
D) Document cRisk.
A+ Pagec3
, Created cBy:cA cSolution
8) Historically,cwhichcof cthecfollowingchascthecAICPA cbeencmost cconcerned cwithcproviding?
A) Auditingcstandards.
B) Professionalcguidancecforcregulatingcfinancialcmarkets.
C) Internalcauditingcstandards.
D) Staff csupport ctocCongress.
9)
Thecorganizationccharged cwithcprotectingcinvestorscand cthecpubliccbycrequiringcfullcdisclosu
recof cfinancialcinformationcbyccompaniescofferingcsecuritiesctocthecpublicciscthe:
A) AuditingcStandardscBoard.
B) FinancialcAccountingcStandardscBoard.
C) Government cAccountingcStandardscBoards.
D) Securitiescand cExchangecCommission.
c
10)
Ancengagement cincwhichcacCPA cfirmcarrangescforcaccriticalcreview cof citscpracticescbycanothe
rcCPA cfirmciscreferred ctocasca(n):
A) PeercReview cEngagement.
B) QualitycControlcEngagement.
C) QualitycAssurancecEngagement.
D) AttestationcEngagement.
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