Created By: A Solution
Test Bank for Principles of Auditing and Other
Assurance Services 22nd Edition by Ray
Whittington, Kurt Pany 2025 A+
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 abe aused aonce, amore athan aonce, aor anot aat aall.
Statements Organizations
A. aDevelops aaccounting astandards
for apublic aand anonpublic acompanies.
B. aDevelops aaccounting astandards afor athe aU.S. aGovernment.
C. aImproves astandards aof afinancial aaccounting afor astate aand alocal
government aentities.
D. aIssues aauditing astandards afor apublic acompanies.
E. aIssues aCPA acertificates.
F. aPrepares athe aCPA aexam.
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Organizations: aAmerican aInstitute aof aCertified aPublic aAccountants, aFederal aAccounting
aStandards aAdvisory aBoard, aFinancial aAccounting aStandards aBoard, aGovernment
aAccounting aStandards aBoard, aPublic aCompany aAccounting aOversight aBoard, aState aBoards
aof aAccountancy.
a
2) The aSarbanes-Oxley aAct aof a2002 amade asignificant areforms afor apublic acompanies
aand atheir aauditors.
a. Describe athe aevents athat aled aup ato athe apassage aof athe aAct.
b. Describe athe amajor achanges amade aby athe aAct.
3) Many apeople aconfuse athe aresponsibilities aof athe aindependent aauditors aand athe
aclient's amanagement awith arespect ato aaudited afinancial astatements.
a. Describe amanagement's aresponsibility aregarding aaudited afinancial astatements.
b. Describe athe aindependent aauditors' aresponsibility aregarding aaudited afinancial
astatements.
c. Evaluate athe afollowing astatement: a"If athe aauditors adisagree awith amanagement
aregarding aan aaccounting aprinciple aused ain athe afinancial astatements, athe aauditors ashould
aexpress atheir aviews ain athe anotes ato athe afinancial astatements."
4) An ainvestor ais aconsidering ainvesting ain aone aof atwo acompanies. aThe acompanies ahave
avery asimilar areported afinancial aposition aand aresults aof aoperations. aHowever, aonly aone aof
athe acompanies ahas aits afinancial astatements aaudited.
a. Describe awhat acreates athe ademand afor aan aaudit ain athis asituation. aInclude aa
adiscussion aof ahow aaudited afinancial astatements afacilitate athis ainvestment atransaction, aand
athe aeffect aof athe aaudit aon abusiness arisk aand ainformation arisk.
b. Identify athe apotential aconsequences ato athe acompany aof anot ahaving aits afinancial
astatements aaudited.
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5) A asummary aof afindings arather athan aassurance ais amost alikely ato abe aincluded ain aa(n):
A) Agreed-upon aprocedures areport.
B) Compilation areport.
C) Audit areport.
D) Review areport.
a
6) The aStatements aon aAuditing aStandards ahave abeen aissued aby athe:
A) Auditing aStandards aBoard.
B) Financial aAccounting aStandards aBoard.
C) Securities aand aExchange aCommission.
D) Federal aBureau aof aInvestigation.
7) The arisk athat aa acompany’s afinancial astatements awill amaterially adepart afrom agenerally
aaccepted aaccounting aprinciples ais areferred ato aas:
A) Business aRisk.
B) Information aRisk.
C) Detection aRisk.
D) Document aRisk.
8) Historically, awhich aof athe afollowing ahas athe aAICPA abeen amost aconcerned awith
aproviding?
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A) Auditing astandards.
B) Professional aguidance afor aregulating afinancial amarkets.
C) Internal aauditing astandards.
D) Staff asupport ato aCongress.
9) The aorganization acharged awith aprotecting ainvestors aand athe apublic aby arequiring afull
adisclosure aof afinancial ainformation aby acompanies aoffering asecurities ato athe apublic ais athe:
A) Auditing aStandards aBoard.
B) Financial aAccounting aStandards aBoard.
C) Government aAccounting aStandards aBoards.
D) Securities aand aExchange aCommission.
a
10) An aengagement ain awhich aa aCPA afirm aarranges afor aa acritical areview aof aits apractices
aby aanother aCPA afirm ais areferred ato aas aa(n):
A) Peer aReview aEngagement.
B) Quality aControl aEngagement.
C) Quality aAssurance aEngagement.
D) Attestation aEngagement.
11) The asequentially-numbered apronouncements aissued aby athe aAuditing aStandards aBoard
aover aa aperiod aof ayears aare aknown aas:
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Test Bank for Principles of Auditing and Other
Assurance Services 22nd Edition by Ray
Whittington, Kurt Pany 2025 A+
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 abe aused aonce, amore athan aonce, aor anot aat aall.
Statements Organizations
A. aDevelops aaccounting astandards
for apublic aand anonpublic acompanies.
B. aDevelops aaccounting astandards afor athe aU.S. aGovernment.
C. aImproves astandards aof afinancial aaccounting afor astate aand alocal
government aentities.
D. aIssues aauditing astandards afor apublic acompanies.
E. aIssues aCPA acertificates.
F. aPrepares athe aCPA aexam.
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Organizations: aAmerican aInstitute aof aCertified aPublic aAccountants, aFederal aAccounting
aStandards aAdvisory aBoard, aFinancial aAccounting aStandards aBoard, aGovernment
aAccounting aStandards aBoard, aPublic aCompany aAccounting aOversight aBoard, aState aBoards
aof aAccountancy.
a
2) The aSarbanes-Oxley aAct aof a2002 amade asignificant areforms afor apublic acompanies
aand atheir aauditors.
a. Describe athe aevents athat aled aup ato athe apassage aof athe aAct.
b. Describe athe amajor achanges amade aby athe aAct.
3) Many apeople aconfuse athe aresponsibilities aof athe aindependent aauditors aand athe
aclient's amanagement awith arespect ato aaudited afinancial astatements.
a. Describe amanagement's aresponsibility aregarding aaudited afinancial astatements.
b. Describe athe aindependent aauditors' aresponsibility aregarding aaudited afinancial
astatements.
c. Evaluate athe afollowing astatement: a"If athe aauditors adisagree awith amanagement
aregarding aan aaccounting aprinciple aused ain athe afinancial astatements, athe aauditors ashould
aexpress atheir aviews ain athe anotes ato athe afinancial astatements."
4) An ainvestor ais aconsidering ainvesting ain aone aof atwo acompanies. aThe acompanies ahave
avery asimilar areported afinancial aposition aand aresults aof aoperations. aHowever, aonly aone aof
athe acompanies ahas aits afinancial astatements aaudited.
a. Describe awhat acreates athe ademand afor aan aaudit ain athis asituation. aInclude aa
adiscussion aof ahow aaudited afinancial astatements afacilitate athis ainvestment atransaction, aand
athe aeffect aof athe aaudit aon abusiness arisk aand ainformation arisk.
b. Identify athe apotential aconsequences ato athe acompany aof anot ahaving aits afinancial
astatements aaudited.
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5) A asummary aof afindings arather athan aassurance ais amost alikely ato abe aincluded ain aa(n):
A) Agreed-upon aprocedures areport.
B) Compilation areport.
C) Audit areport.
D) Review areport.
a
6) The aStatements aon aAuditing aStandards ahave abeen aissued aby athe:
A) Auditing aStandards aBoard.
B) Financial aAccounting aStandards aBoard.
C) Securities aand aExchange aCommission.
D) Federal aBureau aof aInvestigation.
7) The arisk athat aa acompany’s afinancial astatements awill amaterially adepart afrom agenerally
aaccepted aaccounting aprinciples ais areferred ato aas:
A) Business aRisk.
B) Information aRisk.
C) Detection aRisk.
D) Document aRisk.
8) Historically, awhich aof athe afollowing ahas athe aAICPA abeen amost aconcerned awith
aproviding?
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A) Auditing astandards.
B) Professional aguidance afor aregulating afinancial amarkets.
C) Internal aauditing astandards.
D) Staff asupport ato aCongress.
9) The aorganization acharged awith aprotecting ainvestors aand athe apublic aby arequiring afull
adisclosure aof afinancial ainformation aby acompanies aoffering asecurities ato athe apublic ais athe:
A) Auditing aStandards aBoard.
B) Financial aAccounting aStandards aBoard.
C) Government aAccounting aStandards aBoards.
D) Securities aand aExchange aCommission.
a
10) An aengagement ain awhich aa aCPA afirm aarranges afor aa acritical areview aof aits apractices
aby aanother aCPA afirm ais areferred ato aas aa(n):
A) Peer aReview aEngagement.
B) Quality aControl aEngagement.
C) Quality aAssurance aEngagement.
D) Attestation aEngagement.
11) The asequentially-numbered apronouncements aissued aby athe aAuditing aStandards aBoard
aover aa aperiod aof ayears aare aknown aas:
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