THIS DOCUMENT BELONGS TO TESTBANKSPROF
Test Bank for Principles of Auditing and Other Assurance
Services 22nd Edition
by Ray Whittington, Kurt Pany
All Chapters | Q&A Verified |Grade A+ Assured
ISBN 9781260247954
~1~
, THIS DOCUMENT BELONGS TO TESTBANKSPROF
TABLE OF CONTENT
Chapter 1 The Role of the Public Accountant in the American Economy
Chapter 2 Professional Standards
Chapter 3 Professional Ethics
Chapter 4 Legal Liability of CPAs
Chapter 5 Audit Evidence and Documentation
Chapter 6 Audit Planning, Understanding the Client, Assessing Risks, and
Responding
Chapter 7 Internal Control
Chapter 8 Consideration of Internal Control in an Information Technology
Environment
Chapter 9 Audit Sampling
Chapter 10 Cash and Financial Investments
Chapter 11 Accounts Receivable, Notes Receivable, and Revenue
Chapter 12 Inventories and Cost of Goods Sold
Chapter 13 Property, Plant, and Equipment: Depreciation and Depletion
Chapter 14 Accounts Payable and Other Liabilities
Chapter 15 Debt and Equity Capital
Chapter 16 Auditing Operations and Completing the Audit
Chapter 17 Auditors’ Reports
Chapter 18 Integrated Audits of Public Companies
Chapter 19 Additional Assurance Services: Historical Financial Information
Chapter 20 Additional Assurance Services: Other Information
Chapter 21 Internal, Operational, and Compliance Auditing
~2~
, THIS DOCUMENT BELONGS TO TESTBANKSPROF
Chapter 1
Student name:
1) Accountants are regulated by a variety of organizations. Match the statements withthe 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 standardsfor public and nonpublic companies.
B. Develops accounting standardsfor the
U.S. Government.
C. Improves standards of financial accounting for state and local government entities.
D. Issues auditing standards forpublic 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.
~3~
, THIS DOCUMENT BELONGS TO TESTBANKSPROF
2) The Sarbanes-Oxley Act of 2002 made significant reforms for public companies andtheir
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 theclient'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 expresstheir views in the
notes to the financial statements."
4) An investor is considering investing in one of two companies. The companies have
verysimilar 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 theaudit on
business risk and information risk.
b. Identify the potential consequences to the company of not having its financialstatements
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.
6) The Statements on Auditing Standards have been issued by the:
A) Auditing Standards Board.
B) Financial Accounting Standards Board.
C) Securities and Exchange Commission.
D) Federal Bureau of Investigation
~4~
Test Bank for Principles of Auditing and Other Assurance
Services 22nd Edition
by Ray Whittington, Kurt Pany
All Chapters | Q&A Verified |Grade A+ Assured
ISBN 9781260247954
~1~
, THIS DOCUMENT BELONGS TO TESTBANKSPROF
TABLE OF CONTENT
Chapter 1 The Role of the Public Accountant in the American Economy
Chapter 2 Professional Standards
Chapter 3 Professional Ethics
Chapter 4 Legal Liability of CPAs
Chapter 5 Audit Evidence and Documentation
Chapter 6 Audit Planning, Understanding the Client, Assessing Risks, and
Responding
Chapter 7 Internal Control
Chapter 8 Consideration of Internal Control in an Information Technology
Environment
Chapter 9 Audit Sampling
Chapter 10 Cash and Financial Investments
Chapter 11 Accounts Receivable, Notes Receivable, and Revenue
Chapter 12 Inventories and Cost of Goods Sold
Chapter 13 Property, Plant, and Equipment: Depreciation and Depletion
Chapter 14 Accounts Payable and Other Liabilities
Chapter 15 Debt and Equity Capital
Chapter 16 Auditing Operations and Completing the Audit
Chapter 17 Auditors’ Reports
Chapter 18 Integrated Audits of Public Companies
Chapter 19 Additional Assurance Services: Historical Financial Information
Chapter 20 Additional Assurance Services: Other Information
Chapter 21 Internal, Operational, and Compliance Auditing
~2~
, THIS DOCUMENT BELONGS TO TESTBANKSPROF
Chapter 1
Student name:
1) Accountants are regulated by a variety of organizations. Match the statements withthe 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 standardsfor public and nonpublic companies.
B. Develops accounting standardsfor the
U.S. Government.
C. Improves standards of financial accounting for state and local government entities.
D. Issues auditing standards forpublic 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.
~3~
, THIS DOCUMENT BELONGS TO TESTBANKSPROF
2) The Sarbanes-Oxley Act of 2002 made significant reforms for public companies andtheir
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 theclient'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 expresstheir views in the
notes to the financial statements."
4) An investor is considering investing in one of two companies. The companies have
verysimilar 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 theaudit on
business risk and information risk.
b. Identify the potential consequences to the company of not having its financialstatements
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.
6) The Statements on Auditing Standards have been issued by the:
A) Auditing Standards Board.
B) Financial Accounting Standards Board.
C) Securities and Exchange Commission.
D) Federal Bureau of Investigation
~4~
