A+ Page nb1
,A+ Page nb2
,Answers bare bat bthe bend bof beach bchapter bChapter b1
Student bname:
1) Accountants bare bregulated bby ba bvariety bof borganizations. bMatch bthe bstatements bwith bthe
most bdirectly brelated borganization:
b
● Accounting band bReview bServices bCommittee.
● American bInstitute bof bCertified bPublic bAccountants.
● Auditing bStandards bBoard.
● Federal bAccounting bStandards bAdvisory bBoard.
● Financial bAccounting bStandards bBoard.
● General bAccounting bOffice.
● Government bAccounting bStandards bBoard.
● Public bCompany bAccounting bOversight bBoard.
● Securities band bExchange bCommission.
● State bBoards bof bAccountancy.
Organizations bmay bbe bused bonce, bmore bthan bonce, bor bnot bat ball.
Statements Organizations
A. bDevelops baccounting bstandards
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, for bpublic band bnonpublic bcompanies.
B. bDevelops baccounting bstandards bfor bthe bU.S. bGovernment.
C. bImproves bstandards bof bfinancial baccounting bfor bstate band blocal
government bentities.
D. bIssues bauditing bstandards bfor bpublic bcompanies.
E. bIssues bCPA bcertificates.
F. bPrepares bthe bCPA bexam.
Organizations: bAmerican bInstitute bof bCertified bPublic bAccountants, bFederal bAccounting
Standards bAdvisory bBoard, bFinancial bAccounting bStandards bBoard, bGovernment bAccounting
b
Standards bBoard, bPublic bCompany bAccounting bOversight bBoard, bState bBoards bof bAccountancy.
b
b
2) The bSarbanes-Oxley bAct bof b2002 bmade bsignificant breforms bfor bpublic bcompanies band
their bauditors.
b
a. Describe bthe bevents bthat bled bup bto bthe bpassage bof bthe bAct.
b. Describe bthe bmajor bchanges bmade bby bthe bAct.
3) Many bpeople bconfuse bthe bresponsibilities bof bthe bindependent bauditors band bthe bclient's
management bwith brespect bto baudited bfinancial bstatements.
b
a. Describe bmanagement's bresponsibility bregarding baudited bfinancial bstatements.
b. Describe bthe bindependent bauditors' bresponsibility bregarding baudited bfinancial bstatements.
c. Evaluate bthe bfollowing bstatement: b"If bthe bauditors bdisagree bwith bmanagement bregarding
an baccounting bprinciple bused bin bthe bfinancial bstatements, bthe bauditors bshould bexpress btheir
b
views bin bthe bnotes bto bthe bfinancial bstatements."
b
4) An binvestor bis bconsidering binvesting bin bone bof btwo bcompanies. bThe bcompanies bhave
very bsimilar breported bfinancial bposition band bresults bof boperations. bHowever, bonly bone bof bthe
b
companies bhas bits bfinancial bstatements baudited.
b
A+ Page nb4
,A+ Page nb2
,Answers bare bat bthe bend bof beach bchapter bChapter b1
Student bname:
1) Accountants bare bregulated bby ba bvariety bof borganizations. bMatch bthe bstatements bwith bthe
most bdirectly brelated borganization:
b
● Accounting band bReview bServices bCommittee.
● American bInstitute bof bCertified bPublic bAccountants.
● Auditing bStandards bBoard.
● Federal bAccounting bStandards bAdvisory bBoard.
● Financial bAccounting bStandards bBoard.
● General bAccounting bOffice.
● Government bAccounting bStandards bBoard.
● Public bCompany bAccounting bOversight bBoard.
● Securities band bExchange bCommission.
● State bBoards bof bAccountancy.
Organizations bmay bbe bused bonce, bmore bthan bonce, bor bnot bat ball.
Statements Organizations
A. bDevelops baccounting bstandards
A+ Page nb3
, for bpublic band bnonpublic bcompanies.
B. bDevelops baccounting bstandards bfor bthe bU.S. bGovernment.
C. bImproves bstandards bof bfinancial baccounting bfor bstate band blocal
government bentities.
D. bIssues bauditing bstandards bfor bpublic bcompanies.
E. bIssues bCPA bcertificates.
F. bPrepares bthe bCPA bexam.
Organizations: bAmerican bInstitute bof bCertified bPublic bAccountants, bFederal bAccounting
Standards bAdvisory bBoard, bFinancial bAccounting bStandards bBoard, bGovernment bAccounting
b
Standards bBoard, bPublic bCompany bAccounting bOversight bBoard, bState bBoards bof bAccountancy.
b
b
2) The bSarbanes-Oxley bAct bof b2002 bmade bsignificant breforms bfor bpublic bcompanies band
their bauditors.
b
a. Describe bthe bevents bthat bled bup bto bthe bpassage bof bthe bAct.
b. Describe bthe bmajor bchanges bmade bby bthe bAct.
3) Many bpeople bconfuse bthe bresponsibilities bof bthe bindependent bauditors band bthe bclient's
management bwith brespect bto baudited bfinancial bstatements.
b
a. Describe bmanagement's bresponsibility bregarding baudited bfinancial bstatements.
b. Describe bthe bindependent bauditors' bresponsibility bregarding baudited bfinancial bstatements.
c. Evaluate bthe bfollowing bstatement: b"If bthe bauditors bdisagree bwith bmanagement bregarding
an baccounting bprinciple bused bin bthe bfinancial bstatements, bthe bauditors bshould bexpress btheir
b
views bin bthe bnotes bto bthe bfinancial bstatements."
b
4) An binvestor bis bconsidering binvesting bin bone bof btwo bcompanies. bThe bcompanies bhave
very bsimilar breported bfinancial bposition band bresults bof boperations. bHowever, bonly bone bof bthe
b
companies bhas bits bfinancial bstatements baudited.
b
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