Created zBy: zA zSolution
Test zBank zfor zPrinciples zof zAuditing zand zOther zAssurance zServices z22nd zEdition zby zRay
zWhittington, zKurt zPany z2024 zA+
Answers zare zat zthe zend zof zeach zchapter zChapter z1
Student zname:
1) Accountants zare zregulated zby za zvariety zof zorganizations. zMatch zthe zstatements zwith
zthe zmost zdirectly zrelated zorganization:
● Accounting zand zReview zServices zCommittee.
● American zInstitute zof zCertified zPublic zAccountants.
● Auditing zStandards zBoard.
● Federal zAccounting zStandards zAdvisory zBoard.
● Financial zAccounting zStandards zBoard.
● General zAccounting zOffice.
● Government zAccounting zStandards zBoard.
● Public zCompany zAccounting zOversight zBoard.
● Securities zand zExchange zCommission.
● State zBoards zof zAccountancy.
Organizations zmay zbe zused zonce, zmore zthan zonce, zor znot zat zall.
Statements Organizations
A. zDevelops zaccounting zstandards
for zpublic zand znonpublic zcompanies.
B. zDevelops zaccounting zstandards zfor zthe zU.S. zGovernment.
C. zImproves zstandards zof zfinancial zaccounting zfor zstate zand zlocal
government zentities.
D. zIssues zauditing zstandards zfor zpublic zcompanies.
E. zIssues zCPA zcertificates.
F. zPrepares zthe zCPA zexam.
Organizations: zAmerican zInstitute zof zCertified zPublic zAccountants, zFederal zAccounting
zStandards zAdvisory zBoard, zFinancial zAccounting zStandards zBoard, zGovernment
A+ Page z1
,Created zBy: zA zSolution
zAccounting zStandards zBoard, zPublic zCompany zAccounting zOversight zBoard, zState zBoards
zof zAccountancy.
z
2) The zSarbanes-Oxley zAct zof z2002 zmade zsignificant zreforms zfor zpublic zcompanies
zand ztheir zauditors.
a. Describe zthe zevents zthat zled zup zto zthe zpassage zof zthe zAct.
b. Describe zthe zmajor zchanges zmade zby zthe zAct.
3) Many zpeople zconfuse zthe zresponsibilities zof zthe zindependent zauditors zand zthe
zclient's zmanagement zwith zrespect zto zaudited zfinancial zstatements.
a. Describe zmanagement's zresponsibility zregarding zaudited zfinancial zstatements.
b. Describe zthe zindependent zauditors' zresponsibility zregarding zaudited zfinancial
zstatements.
c. Evaluate zthe zfollowing zstatement: z"If zthe zauditors zdisagree zwith zmanagement
zregarding zan zaccounting zprinciple zused zin zthe zfinancial zstatements, zthe zauditors zshould
zexpress ztheir zviews zin zthe znotes zto zthe zfinancial zstatements."
4) An zinvestor zis zconsidering zinvesting zin zone zof ztwo zcompanies. zThe zcompanies zhave
zvery zsimilar zreported zfinancial zposition zand zresults zof zoperations. zHowever, zonly zone zof
zthe zcompanies zhas zits zfinancial zstatements zaudited.
a. Describe zwhat zcreates zthe zdemand zfor zan zaudit zin zthis zsituation. zInclude za
zdiscussion zof zhow zaudited zfinancial zstatements zfacilitate zthis zinvestment ztransaction, zand
zthe zeffect zof zthe zaudit zon zbusiness zrisk zand zinformation zrisk.
b. Identify zthe zpotential zconsequences zto zthe zcompany zof znot zhaving zits zfinancial
zstatements zaudited.
5) A zsummary zof zfindings zrather zthan zassurance zis zmost zlikely zto zbe zincluded zin za(n):
A+ Page z2
,Created zBy: zA zSolution
A) Agreed-upon zprocedures zreport.
B) Compilation zreport.
C) Audit zreport.
D) Review zreport.
z
6) The zStatements zon zAuditing zStandards zhave zbeen zissued zby zthe:
A) Auditing zStandards zBoard.
B) Financial zAccounting zStandards zBoard.
C) Securities zand zExchange zCommission.
D) Federal zBureau zof zInvestigation.
7) The zrisk zthat za zcompany’s zfinancial zstatements zwill zmaterially zdepart zfrom zgenerally
zaccepted zaccounting zprinciples zis zreferred zto zas:
A) Business zRisk.
B) Information zRisk.
C) Detection zRisk.
D) Document zRisk.
8) Historically, zwhich zof zthe zfollowing zhas zthe zAICPA zbeen zmost zconcerned zwith
zproviding?
A) Auditing zstandards.
A+ Page z3
, Created zBy: zA zSolution
B) Professional zguidance zfor zregulating zfinancial zmarkets.
C) Internal zauditing zstandards.
D) Staff zsupport zto zCongress.
9) The zorganization zcharged zwith zprotecting zinvestors zand zthe zpublic zby zrequiring zfull
zdisclosure zof zfinancial zinformation zby zcompanies zoffering zsecurities zto zthe zpublic zis zthe:
A) Auditing zStandards zBoard.
B) Financial zAccounting zStandards zBoard.
C) Government zAccounting zStandards zBoards.
D) Securities zand zExchange zCommission.
z
10) An zengagement zin zwhich za zCPA zfirm zarranges zfor za zcritical zreview zof zits zpractices
zby zanother zCPA zfirm zis zreferred zto zas za(n):
A) Peer zReview zEngagement.
B) Quality zControl zEngagement.
C) Quality zAssurance zEngagement.
D) Attestation zEngagement.
11) The zsequentially-numbered zpronouncements zissued zby zthe zAuditing zStandards zBoard
zover za zperiod zof zyears zare zknown zas:
A) Auditing zStatements zof zPosition z(ASPs).
B) Accounting zSeries zReleases z(ASRs).
A+ Page z4
Test zBank zfor zPrinciples zof zAuditing zand zOther zAssurance zServices z22nd zEdition zby zRay
zWhittington, zKurt zPany z2024 zA+
Answers zare zat zthe zend zof zeach zchapter zChapter z1
Student zname:
1) Accountants zare zregulated zby za zvariety zof zorganizations. zMatch zthe zstatements zwith
zthe zmost zdirectly zrelated zorganization:
● Accounting zand zReview zServices zCommittee.
● American zInstitute zof zCertified zPublic zAccountants.
● Auditing zStandards zBoard.
● Federal zAccounting zStandards zAdvisory zBoard.
● Financial zAccounting zStandards zBoard.
● General zAccounting zOffice.
● Government zAccounting zStandards zBoard.
● Public zCompany zAccounting zOversight zBoard.
● Securities zand zExchange zCommission.
● State zBoards zof zAccountancy.
Organizations zmay zbe zused zonce, zmore zthan zonce, zor znot zat zall.
Statements Organizations
A. zDevelops zaccounting zstandards
for zpublic zand znonpublic zcompanies.
B. zDevelops zaccounting zstandards zfor zthe zU.S. zGovernment.
C. zImproves zstandards zof zfinancial zaccounting zfor zstate zand zlocal
government zentities.
D. zIssues zauditing zstandards zfor zpublic zcompanies.
E. zIssues zCPA zcertificates.
F. zPrepares zthe zCPA zexam.
Organizations: zAmerican zInstitute zof zCertified zPublic zAccountants, zFederal zAccounting
zStandards zAdvisory zBoard, zFinancial zAccounting zStandards zBoard, zGovernment
A+ Page z1
,Created zBy: zA zSolution
zAccounting zStandards zBoard, zPublic zCompany zAccounting zOversight zBoard, zState zBoards
zof zAccountancy.
z
2) The zSarbanes-Oxley zAct zof z2002 zmade zsignificant zreforms zfor zpublic zcompanies
zand ztheir zauditors.
a. Describe zthe zevents zthat zled zup zto zthe zpassage zof zthe zAct.
b. Describe zthe zmajor zchanges zmade zby zthe zAct.
3) Many zpeople zconfuse zthe zresponsibilities zof zthe zindependent zauditors zand zthe
zclient's zmanagement zwith zrespect zto zaudited zfinancial zstatements.
a. Describe zmanagement's zresponsibility zregarding zaudited zfinancial zstatements.
b. Describe zthe zindependent zauditors' zresponsibility zregarding zaudited zfinancial
zstatements.
c. Evaluate zthe zfollowing zstatement: z"If zthe zauditors zdisagree zwith zmanagement
zregarding zan zaccounting zprinciple zused zin zthe zfinancial zstatements, zthe zauditors zshould
zexpress ztheir zviews zin zthe znotes zto zthe zfinancial zstatements."
4) An zinvestor zis zconsidering zinvesting zin zone zof ztwo zcompanies. zThe zcompanies zhave
zvery zsimilar zreported zfinancial zposition zand zresults zof zoperations. zHowever, zonly zone zof
zthe zcompanies zhas zits zfinancial zstatements zaudited.
a. Describe zwhat zcreates zthe zdemand zfor zan zaudit zin zthis zsituation. zInclude za
zdiscussion zof zhow zaudited zfinancial zstatements zfacilitate zthis zinvestment ztransaction, zand
zthe zeffect zof zthe zaudit zon zbusiness zrisk zand zinformation zrisk.
b. Identify zthe zpotential zconsequences zto zthe zcompany zof znot zhaving zits zfinancial
zstatements zaudited.
5) A zsummary zof zfindings zrather zthan zassurance zis zmost zlikely zto zbe zincluded zin za(n):
A+ Page z2
,Created zBy: zA zSolution
A) Agreed-upon zprocedures zreport.
B) Compilation zreport.
C) Audit zreport.
D) Review zreport.
z
6) The zStatements zon zAuditing zStandards zhave zbeen zissued zby zthe:
A) Auditing zStandards zBoard.
B) Financial zAccounting zStandards zBoard.
C) Securities zand zExchange zCommission.
D) Federal zBureau zof zInvestigation.
7) The zrisk zthat za zcompany’s zfinancial zstatements zwill zmaterially zdepart zfrom zgenerally
zaccepted zaccounting zprinciples zis zreferred zto zas:
A) Business zRisk.
B) Information zRisk.
C) Detection zRisk.
D) Document zRisk.
8) Historically, zwhich zof zthe zfollowing zhas zthe zAICPA zbeen zmost zconcerned zwith
zproviding?
A) Auditing zstandards.
A+ Page z3
, Created zBy: zA zSolution
B) Professional zguidance zfor zregulating zfinancial zmarkets.
C) Internal zauditing zstandards.
D) Staff zsupport zto zCongress.
9) The zorganization zcharged zwith zprotecting zinvestors zand zthe zpublic zby zrequiring zfull
zdisclosure zof zfinancial zinformation zby zcompanies zoffering zsecurities zto zthe zpublic zis zthe:
A) Auditing zStandards zBoard.
B) Financial zAccounting zStandards zBoard.
C) Government zAccounting zStandards zBoards.
D) Securities zand zExchange zCommission.
z
10) An zengagement zin zwhich za zCPA zfirm zarranges zfor za zcritical zreview zof zits zpractices
zby zanother zCPA zfirm zis zreferred zto zas za(n):
A) Peer zReview zEngagement.
B) Quality zControl zEngagement.
C) Quality zAssurance zEngagement.
D) Attestation zEngagement.
11) The zsequentially-numbered zpronouncements zissued zby zthe zAuditing zStandards zBoard
zover za zperiod zof zyears zare zknown zas:
A) Auditing zStatements zof zPosition z(ASPs).
B) Accounting zSeries zReleases z(ASRs).
A+ Page z4
