Full Test Bank For
Principles Of Auditing
And Other Assurance
Services 22nd Edition By
Ray Whittington, Kurt
Pany
1
, 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.
2
, 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.
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."
3
, 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.
4
Principles Of Auditing
And Other Assurance
Services 22nd Edition By
Ray Whittington, Kurt
Pany
1
, 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.
2
, 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.
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."
3
, 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.
4
