FULL TEST BANK FOR PRINCIPLES OF AUDITING AND
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
FULL TEST BANK
FOR PRINCIPLES OF
AUDITING AND
OTHER ASSURANCE
SERVICES 22ND
EDITION BY RAY
WHITTINGTON,
KURT PANY
Version 1 1
, FULL TEST BANK FOR PRINCIPLES OF AUDITING AND
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
FULL TEST BANK FOR PRINCIPLES OF AUDITING AND
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
ANSWERS ARE AT THE END OF EACH CHAPTER
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.
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,
Version 1 2
,FULL TEST BANK FOR PRINCIPLES OF AUDITING AND
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
Government Accounting Standards Board, Public Company Accounting Oversight
Board, State Boards Of Accountancy.
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.
Version 1 3
, FULL TEST BANK FOR PRINCIPLES OF AUDITING AND
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
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.
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.
Version 1 4
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
FULL TEST BANK
FOR PRINCIPLES OF
AUDITING AND
OTHER ASSURANCE
SERVICES 22ND
EDITION BY RAY
WHITTINGTON,
KURT PANY
Version 1 1
, FULL TEST BANK FOR PRINCIPLES OF AUDITING AND
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
FULL TEST BANK FOR PRINCIPLES OF AUDITING AND
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
ANSWERS ARE AT THE END OF EACH CHAPTER
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.
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,
Version 1 2
,FULL TEST BANK FOR PRINCIPLES OF AUDITING AND
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
Government Accounting Standards Board, Public Company Accounting Oversight
Board, State Boards Of Accountancy.
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.
Version 1 3
, FULL TEST BANK FOR PRINCIPLES OF AUDITING AND
OTHER ASSURANCE SERVICES 22ND EDITION BY RAY
WHITTINGTON, KURT PANY
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.
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.
Version 1 4
