Test Bank for Principles of Auditing & Other Assurance Services 22nd Edition by Whittington & Pany | Complete Chapters 1-21

TEST BANK - Principles of Auditing and Other Assurance
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jj Services 22nd Edition by Ray Whittington, Kurt Pany
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,Table of Content j j



Chapter 1 The Role of the Public Accountant in the American Economy Chapt
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er 2 Professional Standards
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Chapter 3 Professional Ethics Chapter
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4 Legal Liability of CPAs
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Chapter 5 Audit Evidence and Documentation
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Chapter 6 Audit Planning, Understanding the Client, Assessing Risks, and Re
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sponding
Chapter 7 Internal Control j j j



Chapter 8 Consideration of Internal Control in an Information Technology E
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nvironment
Chapter 9 Audit Sampling j j j



Chapter 10 Cash and Financial Investments
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Chapter 11 Accounts Receivable, Notes Receivable, and Revenue Chapt
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er 12 Inventories and Cost of Goods Sold
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Chapter 13 Property, Plant, and Equipment: Depreciation and Depletion Cha
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pter 14 Accounts Payable and Other Liabilities
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Chapter 15 Debt and Equity Capital j j j j j



Chapter 16 Auditing Operations and Completing the Audit
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Chapter 17 Auditors’ Reports j j j



Chapter 18 Integrated Audits of Public Companies
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Chapter 19 Additional Assurance Services: Historical Financial Information
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Chapter 20 Additional Assurance Services: Other Information Chapter
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21 Internal, Operational, and Compliance Auditing
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, Full Test Bank for Principles of Auditing and Other Assurance
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Services 22ndEdition by Ray Whittington, Kurt Pany
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Answers are at the end of each chapter Chapter
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1

Student name:
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1) Accountantsjarejregulatedjbyjajvarietyjofjorganizations.jMatchjthejstatementsj w
iththejmostjdirectlyjrelatedjorganization:
● AccountingjandjReviewjServicesjCommittee.
● AmericanjInstitutejofjCertifiedjPublicjAccountants.
● AuditingjStandardsjBoard.
● FederaljAccountingjStandardsjAdvisoryjBoard.
● FinancialjAccountingjStandardsjBoard.
● GeneraljAccountingjOffice.
● GovernmentjAccountingjStandardsjBoard.
● PublicjCompanyjAccountingjOversightjBoard.
● SecuritiesjandjExchangejCommission.
● StatejBoardsjofjAccountancy.
Organizationsjmayjbejusedjonce,jmorejthanjonce,jorjnotjatjall.
Statements Organizations
A. Developsjaccountingjstandardsforj
publicjandjnonpublicjcompanies.
B. Developsjaccountingjstandardsforjthe
U.S.jGovernment.
C. Improvesjstandardsjofjfinancialj accou
ntingjforjstatejandjlocaljgovernmentj entiti
es.
D. Issuesjauditingjstandardsjforpublicj
companies.
E. IssuesjCPAjcertificates.

F. PreparesjthejCPAjexam.

Organizations:jAmericanjInstitutejofjCertifiedjPublicjAccountants,jFederaljAccountingj Sta
ndardsjAdvisoryjBoard,jFinancialjAccountingjStandardsjBoard,jGovernmentj AccountingjSta
ndardsjBoard,jPublicjCompanyjAccountingjOversightjBoard,jStatejBoardsj ofjAccountancy.

, 2) ThejSarbanes-
OxleyjActjofj2002jmadejsignificantjreformsjforjpublicjcompaniesj andtheirjauditors.
a. DescribejthejeventsjthatjledjupjtojthejpassagejofjthejAct.
b. DescribejthejmajorjchangesjmadejbyjthejAct.




3) Manyjpeoplejconfusejthejresponsibilitiesjofjthejindependentjauditorsj a
ndjtheclient'sjmanagementjwithjrespectjtojauditedjfinancialjstatements.
a. Describejmanagement'sjresponsibilityjregardingjauditedjfinancialjstatements.
b. Describejthejindependentjauditors'jresponsibilityjregardingjauditedjfinancialjstatements.
c. Evaluatejthejfollowingjstatement:j"Ifjthejauditorsjdisagreejwithjmanagementj re
gardingjanjaccountingjprinciplejusedjinjthejfinancialjstatements,jthejauditorsjshouldj expr
esstheirjviewsjinjthejnotesjtojthejfinancialjstatements."



4) Anjinvestorjisjconsideringjinvestingjinjonejofjtwojcompanies.jThejcompaniesjhavej ve
rysimilarjreportedjfinancialjpositionjandjresultsjofjoperations.jHowever,jonlyjonejofj thejco
mpaniesjhasjitsjfinancialjstatementsjaudited.
a. Describej whatj createsj thej demandj forj anj auditj injthisj situation.j Includej aj dis
cussionjofj howj auditedj financialj statementsj facilitatej thisj investmentj transaction,j andjt
hejeffectjofjtheauditjonjbusinessjriskjandjinformationjrisk.
b. Identifyj thej potentialj consequencesj toj thej companyj ofj notj havingj itsj fin
ancialstatementsjaudited.

5) Ajsummaryjofjfindingsjratherjthanjassurancejisjmostjlikelyjtojbejincludedjinja(n):

A) Agreed-uponjproceduresjreport.
B) Compilationjreport.
C) Auditjreport.
D) Reviewjreport.