Created kjBy: kjA kjSolution
Test Bank for Principles of Auditing and Other
kj kj kj kj kj kj kj
kj Assurance Services 22nd Edition by Ray
kj kj kj kj kj
kj Whittington, Kurt Pany 2024 A+
kj kj kj kj
Answers kjare kjat kjthe kjend kjof kjeach kjchapter kjChapter kj1
Student kjname:
1) Accountants kjare kjregulated kjby kja kjvariety kjof kjorganizations. kjMatch kjthe kjstatements kjwith
the kjmost kjdirectly kjrelated kjorganization:
kj
● Accounting kjand kjReview kjServices kjCommittee.
● American kjInstitute kjof kjCertified kjPublic kjAccountants.
● Auditing kjStandards kjBoard.
● Federal kjAccounting kjStandards kjAdvisory kjBoard.
● Financial kjAccounting kjStandards kjBoard.
● General kjAccounting kjOffice.
● Government kjAccounting kjStandards kjBoard.
● Public kjCompany kjAccounting kjOversight kjBoard.
● Securities kjand kjExchange kjCommission.
● State kjBoards kjof kjAccountancy.
Organizations kjmay kjbe kjused kjonce, kjmore kjthan kjonce, kjor kjnot kjat kjall.
Statements Organizations
A. kjDevelops kjaccounting kjstandards
for kjpublic kjand kjnonpublic kjcompanies.
B. kjDevelops kjaccounting kjstandards kjfor kjthe kjU.S. kjGovernment.
C. kjImproves kjstandards kjof kjfinancial kjaccounting kjfor kjstate kjand kjlocal
government kjentities.
D. kjIssues kjauditing kjstandards kjfor kjpublic kjcompanies.
E. kjIssues kjCPA kjcertificates.
F. kjPrepares kjthe kjCPA kjexam.
A+ Page kj1
,Created kjBy: kjA kjSolution
Organizations: kjAmerican kjInstitute kjof kjCertified kjPublic kjAccountants, kjFederal kjAccounting
Standards kjAdvisory kjBoard, kjFinancial kjAccounting kjStandards kjBoard, kjGovernment kjAccounting
kj
Standards kjBoard, kjPublic kjCompany kjAccounting kjOversight kjBoard, kjState kjBoards kjof
kj
Accountancy.
kj
kj
2) The kjSarbanes-Oxley kjAct kjof kj2002 kjmade kjsignificant kjreforms kjfor kjpublic kjcompanies kjand
their kjauditors.
kj
a. Describe kjthe kjevents kjthat kjled kjup kjto kjthe kjpassage kjof kjthe kjAct.
b. Describe kjthe kjmajor kjchanges kjmade kjby kjthe kjAct.
3) Many kjpeople kjconfuse kjthe kjresponsibilities kjof kjthe kjindependent kjauditors kjand kjthe kjclient's
management kjwith kjrespect kjto kjaudited kjfinancial kjstatements.
kj
a. Describe kjmanagement's kjresponsibility kjregarding kjaudited kjfinancial kjstatements.
b. Describe kjthe kjindependent kjauditors' kjresponsibility kjregarding kjaudited kjfinancial
statements.
kj
c. Evaluate kjthe kjfollowing kjstatement: kj"If kjthe kjauditors kjdisagree kjwith kjmanagement
regarding kjan kjaccounting kjprinciple kjused kjin kjthe kjfinancial kjstatements, kjthe kjauditors kjshould
kj
express kjtheir kjviews kjin kjthe kjnotes kjto kjthe kjfinancial kjstatements."
kj
4) An kjinvestor kjis kjconsidering kjinvesting kjin kjone kjof kjtwo kjcompanies. kjThe kjcompanies kjhave
very kjsimilar kjreported kjfinancial kjposition kjand kjresults kjof kjoperations. kjHowever, kjonly kjone kjof kjthe
kj
companies kjhas kjits kjfinancial kjstatements kjaudited.
kj
a. Describe kjwhat kjcreates kjthe kjdemand kjfor kjan kjaudit kjin kjthis kjsituation. kjInclude kja kjdiscussion
of kjhow kjaudited kjfinancial kjstatements kjfacilitate kjthis kjinvestment kjtransaction, kjand kjthe kjeffect kjof
kj
the kjaudit kjon kjbusiness kjrisk kjand kjinformation kjrisk.
kj
b. Identify kjthe kjpotential kjconsequences kjto kjthe kjcompany kjof kjnot kjhaving kjits kjfinancial
statements kjaudited.
kj
A+ Page kj2
,Created kjBy: kjA kjSolution
5) A kjsummary kjof kjfindings kjrather kjthan kjassurance kjis kjmost kjlikely kjto kjbe kjincluded kjin kja(n):
A) Agreed-upon kjprocedures kjreport.
B) Compilation kjreport.
C) Audit kjreport.
D) Review kjreport.
kj
6) The kjStatements kjon kjAuditing kjStandards kjhave kjbeen kjissued kjby kjthe:
A) Auditing kjStandards kjBoard.
B) Financial kjAccounting kjStandards kjBoard.
C) Securities kjand kjExchange kjCommission.
D) Federal kjBureau kjof kjInvestigation.
7) The kjrisk kjthat kja kjcompany’s kjfinancial kjstatements kjwill kjmaterially kjdepart kjfrom kjgenerally
accepted kjaccounting kjprinciples kjis kjreferred kjto kjas:
kj
A) Business kjRisk.
B) Information kjRisk.
C) Detection kjRisk.
D) Document kjRisk.
8) Historically, kjwhich kjof kjthe kjfollowing kjhas kjthe kjAICPA kjbeen kjmost kjconcerned kjwith
providing?
kj
A) Auditing kjstandards.
A+ Page kj3
, Created kjBy: kjA kjSolution
B) Professional kjguidance kjfor kjregulating kjfinancial kjmarkets.
C) Internal kjauditing kjstandards.
D) Staff kjsupport kjto kjCongress.
9) The kjorganization kjcharged kjwith kjprotecting kjinvestors kjand kjthe kjpublic kjby kjrequiring kjfull
disclosure kjof kjfinancial kjinformation kjby kjcompanies kjoffering kjsecurities kjto kjthe kjpublic kjis kjthe:
kj
A) Auditing kjStandards kjBoard.
B) Financial kjAccounting kjStandards kjBoard.
C) Government kjAccounting kjStandards kjBoards.
D) Securities kjand kjExchange kjCommission.
kj
10) An kjengagement kjin kjwhich kja kjCPA kjfirm kjarranges kjfor kja kjcritical kjreview kjof kjits kjpractices
by kjanother kjCPA kjfirm kjis kjreferred kjto kjas kja(n):
kj
A) Peer kjReview kjEngagement.
B) Quality kjControl kjEngagement.
C) Quality kjAssurance kjEngagement.
D) Attestation kjEngagement.
11) The kjsequentially-numbered kjpronouncements kjissued kjby kjthe kjAuditing kjStandards kjBoard
over kja kjperiod kjof kjyears kjare kjknown kjas:
kj
A) Auditing kjStatements kjof kjPosition kj(ASPs).
B) Accounting kjSeries kjReleases kj(ASRs).
C) Statements kjon kjAuditing kjStandards kj(SASs).
A+ Page kj4
Test Bank for Principles of Auditing and Other
kj kj kj kj kj kj kj
kj Assurance Services 22nd Edition by Ray
kj kj kj kj kj
kj Whittington, Kurt Pany 2024 A+
kj kj kj kj
Answers kjare kjat kjthe kjend kjof kjeach kjchapter kjChapter kj1
Student kjname:
1) Accountants kjare kjregulated kjby kja kjvariety kjof kjorganizations. kjMatch kjthe kjstatements kjwith
the kjmost kjdirectly kjrelated kjorganization:
kj
● Accounting kjand kjReview kjServices kjCommittee.
● American kjInstitute kjof kjCertified kjPublic kjAccountants.
● Auditing kjStandards kjBoard.
● Federal kjAccounting kjStandards kjAdvisory kjBoard.
● Financial kjAccounting kjStandards kjBoard.
● General kjAccounting kjOffice.
● Government kjAccounting kjStandards kjBoard.
● Public kjCompany kjAccounting kjOversight kjBoard.
● Securities kjand kjExchange kjCommission.
● State kjBoards kjof kjAccountancy.
Organizations kjmay kjbe kjused kjonce, kjmore kjthan kjonce, kjor kjnot kjat kjall.
Statements Organizations
A. kjDevelops kjaccounting kjstandards
for kjpublic kjand kjnonpublic kjcompanies.
B. kjDevelops kjaccounting kjstandards kjfor kjthe kjU.S. kjGovernment.
C. kjImproves kjstandards kjof kjfinancial kjaccounting kjfor kjstate kjand kjlocal
government kjentities.
D. kjIssues kjauditing kjstandards kjfor kjpublic kjcompanies.
E. kjIssues kjCPA kjcertificates.
F. kjPrepares kjthe kjCPA kjexam.
A+ Page kj1
,Created kjBy: kjA kjSolution
Organizations: kjAmerican kjInstitute kjof kjCertified kjPublic kjAccountants, kjFederal kjAccounting
Standards kjAdvisory kjBoard, kjFinancial kjAccounting kjStandards kjBoard, kjGovernment kjAccounting
kj
Standards kjBoard, kjPublic kjCompany kjAccounting kjOversight kjBoard, kjState kjBoards kjof
kj
Accountancy.
kj
kj
2) The kjSarbanes-Oxley kjAct kjof kj2002 kjmade kjsignificant kjreforms kjfor kjpublic kjcompanies kjand
their kjauditors.
kj
a. Describe kjthe kjevents kjthat kjled kjup kjto kjthe kjpassage kjof kjthe kjAct.
b. Describe kjthe kjmajor kjchanges kjmade kjby kjthe kjAct.
3) Many kjpeople kjconfuse kjthe kjresponsibilities kjof kjthe kjindependent kjauditors kjand kjthe kjclient's
management kjwith kjrespect kjto kjaudited kjfinancial kjstatements.
kj
a. Describe kjmanagement's kjresponsibility kjregarding kjaudited kjfinancial kjstatements.
b. Describe kjthe kjindependent kjauditors' kjresponsibility kjregarding kjaudited kjfinancial
statements.
kj
c. Evaluate kjthe kjfollowing kjstatement: kj"If kjthe kjauditors kjdisagree kjwith kjmanagement
regarding kjan kjaccounting kjprinciple kjused kjin kjthe kjfinancial kjstatements, kjthe kjauditors kjshould
kj
express kjtheir kjviews kjin kjthe kjnotes kjto kjthe kjfinancial kjstatements."
kj
4) An kjinvestor kjis kjconsidering kjinvesting kjin kjone kjof kjtwo kjcompanies. kjThe kjcompanies kjhave
very kjsimilar kjreported kjfinancial kjposition kjand kjresults kjof kjoperations. kjHowever, kjonly kjone kjof kjthe
kj
companies kjhas kjits kjfinancial kjstatements kjaudited.
kj
a. Describe kjwhat kjcreates kjthe kjdemand kjfor kjan kjaudit kjin kjthis kjsituation. kjInclude kja kjdiscussion
of kjhow kjaudited kjfinancial kjstatements kjfacilitate kjthis kjinvestment kjtransaction, kjand kjthe kjeffect kjof
kj
the kjaudit kjon kjbusiness kjrisk kjand kjinformation kjrisk.
kj
b. Identify kjthe kjpotential kjconsequences kjto kjthe kjcompany kjof kjnot kjhaving kjits kjfinancial
statements kjaudited.
kj
A+ Page kj2
,Created kjBy: kjA kjSolution
5) A kjsummary kjof kjfindings kjrather kjthan kjassurance kjis kjmost kjlikely kjto kjbe kjincluded kjin kja(n):
A) Agreed-upon kjprocedures kjreport.
B) Compilation kjreport.
C) Audit kjreport.
D) Review kjreport.
kj
6) The kjStatements kjon kjAuditing kjStandards kjhave kjbeen kjissued kjby kjthe:
A) Auditing kjStandards kjBoard.
B) Financial kjAccounting kjStandards kjBoard.
C) Securities kjand kjExchange kjCommission.
D) Federal kjBureau kjof kjInvestigation.
7) The kjrisk kjthat kja kjcompany’s kjfinancial kjstatements kjwill kjmaterially kjdepart kjfrom kjgenerally
accepted kjaccounting kjprinciples kjis kjreferred kjto kjas:
kj
A) Business kjRisk.
B) Information kjRisk.
C) Detection kjRisk.
D) Document kjRisk.
8) Historically, kjwhich kjof kjthe kjfollowing kjhas kjthe kjAICPA kjbeen kjmost kjconcerned kjwith
providing?
kj
A) Auditing kjstandards.
A+ Page kj3
, Created kjBy: kjA kjSolution
B) Professional kjguidance kjfor kjregulating kjfinancial kjmarkets.
C) Internal kjauditing kjstandards.
D) Staff kjsupport kjto kjCongress.
9) The kjorganization kjcharged kjwith kjprotecting kjinvestors kjand kjthe kjpublic kjby kjrequiring kjfull
disclosure kjof kjfinancial kjinformation kjby kjcompanies kjoffering kjsecurities kjto kjthe kjpublic kjis kjthe:
kj
A) Auditing kjStandards kjBoard.
B) Financial kjAccounting kjStandards kjBoard.
C) Government kjAccounting kjStandards kjBoards.
D) Securities kjand kjExchange kjCommission.
kj
10) An kjengagement kjin kjwhich kja kjCPA kjfirm kjarranges kjfor kja kjcritical kjreview kjof kjits kjpractices
by kjanother kjCPA kjfirm kjis kjreferred kjto kjas kja(n):
kj
A) Peer kjReview kjEngagement.
B) Quality kjControl kjEngagement.
C) Quality kjAssurance kjEngagement.
D) Attestation kjEngagement.
11) The kjsequentially-numbered kjpronouncements kjissued kjby kjthe kjAuditing kjStandards kjBoard
over kja kjperiod kjof kjyears kjare kjknown kjas:
kj
A) Auditing kjStatements kjof kjPosition kj(ASPs).
B) Accounting kjSeries kjReleases kj(ASRs).
C) Statements kjon kjAuditing kjStandards kj(SASs).
A+ Page kj4
