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Test Bank for Principles of Auditing and Other Assurance Service
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s 22nd Edition by Ray Whittington, Kurt Pany All Chapters.
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Answers are at the end of each chapter
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1 Versionso
1

,Chapterso1
Studentsoname:_so
1) Accountantssoaresoregulatedsobysoaso varietysoofsoorganizations.so Matchsothesostatementssowit
hsothesomostso directlysorelatedsoorganization:
● AccountingsoandsoReviewsoServicessoCommittee.
● AmericansoInstitutesoofsoCertifiedsoPublicsoAccountants.
● AuditingsoStandardssoBoard.
● FederalsoAccountingsoStandardssoAdvisorysoBoard.
● FinancialsoAccountingsoStandardssoBoard.
● GeneralsoAccountingsoOffice.
● GovernmentsoAccountingsoStandardssoBoard.
● PublicsoCompanysoAccountingsoOversightsoBoard.
● SecuritiessoandsoExchangesoCommission.
● StatesoBoardssoofsoAccountancy.
Organizationssomaysobesousedsoonce,somoresothansoonce,soorsonotsoatso all.
Statements Organizations
A.soDevelopssoaccountingsostandards
forsopublicsoandsononpubli
csocompanies.
B.soDevelopssoaccountingsostandard
ssoforsothesoU.S.soGovernment.
C.soImprovessostandardssoofsofinancia
lsoaccountingsoforsostatesoandsolocal
governmentsoentities.
D.soIssuessoauditingsostandardssofor
publicsocompanies.
E.soIssuessoCPAsocertificates.




Versionso 2
1

,2) ThesoSarbanes-
OxleysoActso ofso2002somadesosignificantsoreformsso forsopublicsocompaniessoandsotheirsoauditors.
a. Describesothesoeventssothatso ledsoupsotosothesopassagesoofsothesoAct.
b. DescribesothesomajorsochangessomadesobysothesoAct.




3) Manysopeoplesoconfusesothesoresponsibilitiessoofsothesoindependentsoauditorssoandsothesocl
ient'ssomanagementso withsorespectso toso auditedso financialsostatements.
a. Describeso management'ssoresponsibilitysoregardingsoauditedsofinancialsostatements.
b. Describesothesoindependentso auditors'soresponsibilitysoregardingsoauditedso financialsostatements.
c. Evaluatesothesofollowingsostatement:so"Ifsothesoauditorssodisagreesowithsomanagementsoregardi
ngsoansoaccountingsoprinciplesousedsoinsothesofinancialsostatements,sothesoauditorssoshouldsoexpresssothe
irsoviewssoinsothesonotessotosotheso financialsostatements."


4) Ansoinvestorsoissoconsideringsoinvestingsoinsoonesoofsotwosocompanies.soThesocompaniessohave
soverysosimilarsoreportedsofinancialsopositionsoandsoresultssoofsooperations.so However,soonlysoonesoofsoth

esocompaniessohasso itssofinancialsostatementssoaudited.
a. Describesowhatso createssothesodemandso forsoansoauditsoinsothissosituation.soIncludesoasodiscussionso
ofsohowsoauditedsofinancialsostatementssofacilitatesothissoinvestmentsotransaction,soandsothesoeffectsoofso
thesoauditsoonsobusinesssorisksoandso informationsorisk.
b. Identifysothesopotentialsoconsequencessotosothesocompanysoofsonotsohavingso itssofinancialsostate
mentssoaudited.

5) Asosummarysoofsofindingssorathersothansoassuranceso issomostso likelysotoso besoincludedso insoa(n):

A) Agreed-uponsoproceduressoreport.
B) Compilationsoreport.
C) Auditsoreport.
D) Reviewsoreport.




Versionso 3
1

, 6) ThesoStatementssoonsoAuditingsoStandardssohavesobeensoissuedso bysothe:

A) AuditingsoStandardssoBoard.
B) FinancialsoAccountingsoStandardssoBoard.
C) SecuritiessoandsoExchangesoCommission.
D) FederalsoBureausoofsoInvestigation.




7) Thesorisksothatsoasocompany’ssofinancialsostatementssowillsomateriallysodepartsofromsogen
erallysoacceptedsoaccountingsoprinciplesso issoreferredso toso as:

A) BusinesssoRisk.
B) InformationsoRisk.
C) DetectionsoRisk.
D) DocumentsoRisk.




8) Historically,sowhichsoofsotheso followingsohassothesoAICPAsobeensomostsoconcerneds
owithsoproviding?




A) Auditingsostandards.
B) Professionalsoguidanceso forsoregulatingso financialsomarkets.
C) Internalsoauditingsostandards.
D) Staffsosupportsotoso Congress.




9) Thesoorganizationsochargedsowithsoprotectingso investorssoandsothesopublicsobysorequiring
so fullsodisclosuresoofsofinancialsoinformationsobysocompaniessoofferingsosecuritiessotosothesopublic

so issothe:




A) AuditingsoStandardssoBoard.
B) FinancialsoAccountingsoStandardssoBoard.
C) GovernmentsoAccountingsoStandardssoBoards.
D) SecuritiessoandsoExchangesoCommission.


Versionso 4
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