CreatedqBy:qAqSolution
Test Bank for Principles of Auditing and Other Ass
q q q q q q q q
urance Services 22nd Edition by Ray Whittington,
q q q q q q q
Kurt Pany 2024 A+
q q q
AnswersqareqatqtheqendqofqeachqchapterqChapterq1qStudent
q name:
1) Accountantsqareqregulatedqbyqaqvarietyqofqorganizations.qMatchqtheqstatementsqwithqtheq
mostqdirectlyqrelatedqorganization:
● AccountingqandqReviewqServicesqCommittee.
● AmericanqInstituteqofqCertifiedqPublicqAccountants.
● AuditingqStandardsqBoard.
● FederalqAccountingqStandardsqAdvisoryqBoard.
● FinancialqAccountingqStandardsqBoard.
● GeneralqAccountingqOffice.
● GovernmentqAccountingqStandardsqBoard.
● PublicqCompanyqAccountingqOversightqBoard.
● SecuritiesqandqExchangeqCommission.
● StateqBoardsqofqAccountancy.
Organizationsqmayqbequsedqonce,qmoreqthanqonce,qorqnotqatqall.q
Statements Organizations
A. Developsqaccountingqstandardsqfo
rqpublicqandqnonpublicqcompanies.
B. DevelopsqaccountingqstandardsqforqtheqU.S.qGovernment.
C. Improvesqstandardsqofqfinancialqaccountingqforqstateqandqlocalq
governmentqentities.
D. Issuesqauditingqstandardsqforqpublicqcompanies.
E. IssuesqCPAqcertificates.
F. PreparesqtheqCPAqexam.
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,CreatedqBy:qAqSolution
Organizations:qAmericanqInstituteqofqCertifiedqPublicqAccountants,qFederalqAccountingqStandards
q AdvisoryqBoard,qFinancialqAccountingqStandardsqBoard,qGovernmentqAccountingqStandardsqBoa
rd,qPublicqCompanyqAccountingqOversightqBoard,qStateqBoardsqofqAccountancy.
2) TheqSarbanes-
OxleyqActqofq2002qmadeqsignificantqreformsqforqpublicqcompaniesqandqtheirqauditors.
a. DescribeqtheqeventsqthatqledqupqtoqtheqpassageqofqtheqAct.
b. DescribeqtheqmajorqchangesqmadeqbyqtheqAct.
3) Manyqpeopleqconfuseqtheqresponsibilitiesqofqtheqindependentqauditorsqandqtheqclient'sq
managementqwithqrespectqtoqauditedqfinancialqstatements.
a. Describeqmanagement'sqresponsibilityqregardingqauditedqfinancialqstatements.
b. Describeqtheqindependentqauditors'qresponsibilityqregardingqauditedqfinancialqstatements.
c. Evaluateqtheqfollowingqstatement:q"Ifqtheqauditorsqdisagreeqwithqmanagementqregardingqanq
accountingqprinciplequsedqinqtheqfinancialqstatements,qtheqauditorsqshouldqexpressqtheirqviewsqinqthe
q notesqtoqtheqfinancialqstatements."
4) Anqinvestorqisqconsideringqinvestingqinqoneqofqtwoqcompanies.qTheqcompaniesqhaveqveryqsi
milarqreportedqfinancialqpositionqandqresultsqofqoperations.qHowever,qonlyqoneqofqtheqcompaniesqha
sqitsqfinancialqstatementsqaudited.
a. Describeqwhatqcreatesqtheqdemandqforqanqauditqinqthisqsituation.qIncludeqaqdiscussionqofqho
wqauditedqfinancialqstatementsqfacilitateqthisqinvestmentqtransaction,qandqtheqeffectqofqtheqauditqonq
businessqriskqandqinformationqrisk.
b. Identifyqtheqpotentialqconsequencesqtoqtheqcompanyqofqnotqhavingqitsqfinancialqstatementsqa
udited.
5) Aqsummaryqofqfindingsqratherqthanqassuranceqisqmostqlikelyqtoqbeqincludedqinqa(n):
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,CreatedqBy:qAqSolution
A) Agreed-uponqproceduresqreport.
B) Compilationqreport.
C) Auditqreport.
D) Reviewqreport.
6) TheqStatementsqonqAuditingqStandardsqhaveqbeenqissuedqbyqthe:
A) AuditingqStandardsqBoard.
B) FinancialqAccountingqStandardsqBoard.
C) SecuritiesqandqExchangeqCommission.
D) FederalqBureauqofqInvestigation.
7) Theqriskqthatqaqcompany’sqfinancialqstatementsqwillqmateriallyqdepartqfromqgenerallyqa
cceptedqaccountingqprinciplesqisqreferredqtoqas:
A) BusinessqRisk.
B) InformationqRisk.
C) DetectionqRisk.
D) DocumentqRisk.
8) Historically,qwhichqofqtheqfollowingqhasqtheqAICPAqbeenqmostqconcernedqwithqproviding?
A) Auditingqstandards.
B) Professionalqguidanceqforqregulatingqfinancialqmarkets.
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, CreatedqBy:qAqSolution
C) Internalqauditingqstandards.
D) StaffqsupportqtoqCongress.
9) Theqorganizationqchargedqwithqprotectingqinvestorsqandqtheqpublicqbyqrequiringqfullq
disclosureqofqfinancialqinformationqbyqcompaniesqofferingqsecuritiesqtoqtheqpublicqisqthe:
A) AuditingqStandardsqBoard.
B) FinancialqAccountingqStandardsqBoard.
C) GovernmentqAccountingqStandardsqBoards.
D) SecuritiesqandqExchangeqCommission.
10) AnqengagementqinqwhichqaqCPAqfirmqarrangesqforqaqcriticalqreviewqofqitsqpracticesqbyqa
notherqCPAqfirmqisqreferredqtoqasqa(n):
A) PeerqReviewqEngagement.
B) QualityqControlqEngagement.
C) QualityqAssuranceqEngagement.
D) AttestationqEngagement.
11) Theqsequentially-
numberedqpronouncementsqissuedqbyqtheqAuditingqStandardsqBoardqoverqaqperiodqofqyearsqareq
knownqas:
A) AuditingqStatementsqofqPositionq(ASPs).
B) AccountingqSeriesqReleasesq(ASRs).
C) StatementsqonqAuditingqStandardsq(SASs).
A+ Pageq4
Test Bank for Principles of Auditing and Other Ass
q q q q q q q q
urance Services 22nd Edition by Ray Whittington,
q q q q q q q
Kurt Pany 2024 A+
q q q
AnswersqareqatqtheqendqofqeachqchapterqChapterq1qStudent
q name:
1) Accountantsqareqregulatedqbyqaqvarietyqofqorganizations.qMatchqtheqstatementsqwithqtheq
mostqdirectlyqrelatedqorganization:
● AccountingqandqReviewqServicesqCommittee.
● AmericanqInstituteqofqCertifiedqPublicqAccountants.
● AuditingqStandardsqBoard.
● FederalqAccountingqStandardsqAdvisoryqBoard.
● FinancialqAccountingqStandardsqBoard.
● GeneralqAccountingqOffice.
● GovernmentqAccountingqStandardsqBoard.
● PublicqCompanyqAccountingqOversightqBoard.
● SecuritiesqandqExchangeqCommission.
● StateqBoardsqofqAccountancy.
Organizationsqmayqbequsedqonce,qmoreqthanqonce,qorqnotqatqall.q
Statements Organizations
A. Developsqaccountingqstandardsqfo
rqpublicqandqnonpublicqcompanies.
B. DevelopsqaccountingqstandardsqforqtheqU.S.qGovernment.
C. Improvesqstandardsqofqfinancialqaccountingqforqstateqandqlocalq
governmentqentities.
D. Issuesqauditingqstandardsqforqpublicqcompanies.
E. IssuesqCPAqcertificates.
F. PreparesqtheqCPAqexam.
A+ Pageq1
,CreatedqBy:qAqSolution
Organizations:qAmericanqInstituteqofqCertifiedqPublicqAccountants,qFederalqAccountingqStandards
q AdvisoryqBoard,qFinancialqAccountingqStandardsqBoard,qGovernmentqAccountingqStandardsqBoa
rd,qPublicqCompanyqAccountingqOversightqBoard,qStateqBoardsqofqAccountancy.
2) TheqSarbanes-
OxleyqActqofq2002qmadeqsignificantqreformsqforqpublicqcompaniesqandqtheirqauditors.
a. DescribeqtheqeventsqthatqledqupqtoqtheqpassageqofqtheqAct.
b. DescribeqtheqmajorqchangesqmadeqbyqtheqAct.
3) Manyqpeopleqconfuseqtheqresponsibilitiesqofqtheqindependentqauditorsqandqtheqclient'sq
managementqwithqrespectqtoqauditedqfinancialqstatements.
a. Describeqmanagement'sqresponsibilityqregardingqauditedqfinancialqstatements.
b. Describeqtheqindependentqauditors'qresponsibilityqregardingqauditedqfinancialqstatements.
c. Evaluateqtheqfollowingqstatement:q"Ifqtheqauditorsqdisagreeqwithqmanagementqregardingqanq
accountingqprinciplequsedqinqtheqfinancialqstatements,qtheqauditorsqshouldqexpressqtheirqviewsqinqthe
q notesqtoqtheqfinancialqstatements."
4) Anqinvestorqisqconsideringqinvestingqinqoneqofqtwoqcompanies.qTheqcompaniesqhaveqveryqsi
milarqreportedqfinancialqpositionqandqresultsqofqoperations.qHowever,qonlyqoneqofqtheqcompaniesqha
sqitsqfinancialqstatementsqaudited.
a. Describeqwhatqcreatesqtheqdemandqforqanqauditqinqthisqsituation.qIncludeqaqdiscussionqofqho
wqauditedqfinancialqstatementsqfacilitateqthisqinvestmentqtransaction,qandqtheqeffectqofqtheqauditqonq
businessqriskqandqinformationqrisk.
b. Identifyqtheqpotentialqconsequencesqtoqtheqcompanyqofqnotqhavingqitsqfinancialqstatementsqa
udited.
5) Aqsummaryqofqfindingsqratherqthanqassuranceqisqmostqlikelyqtoqbeqincludedqinqa(n):
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,CreatedqBy:qAqSolution
A) Agreed-uponqproceduresqreport.
B) Compilationqreport.
C) Auditqreport.
D) Reviewqreport.
6) TheqStatementsqonqAuditingqStandardsqhaveqbeenqissuedqbyqthe:
A) AuditingqStandardsqBoard.
B) FinancialqAccountingqStandardsqBoard.
C) SecuritiesqandqExchangeqCommission.
D) FederalqBureauqofqInvestigation.
7) Theqriskqthatqaqcompany’sqfinancialqstatementsqwillqmateriallyqdepartqfromqgenerallyqa
cceptedqaccountingqprinciplesqisqreferredqtoqas:
A) BusinessqRisk.
B) InformationqRisk.
C) DetectionqRisk.
D) DocumentqRisk.
8) Historically,qwhichqofqtheqfollowingqhasqtheqAICPAqbeenqmostqconcernedqwithqproviding?
A) Auditingqstandards.
B) Professionalqguidanceqforqregulatingqfinancialqmarkets.
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, CreatedqBy:qAqSolution
C) Internalqauditingqstandards.
D) StaffqsupportqtoqCongress.
9) Theqorganizationqchargedqwithqprotectingqinvestorsqandqtheqpublicqbyqrequiringqfullq
disclosureqofqfinancialqinformationqbyqcompaniesqofferingqsecuritiesqtoqtheqpublicqisqthe:
A) AuditingqStandardsqBoard.
B) FinancialqAccountingqStandardsqBoard.
C) GovernmentqAccountingqStandardsqBoards.
D) SecuritiesqandqExchangeqCommission.
10) AnqengagementqinqwhichqaqCPAqfirmqarrangesqforqaqcriticalqreviewqofqitsqpracticesqbyqa
notherqCPAqfirmqisqreferredqtoqasqa(n):
A) PeerqReviewqEngagement.
B) QualityqControlqEngagement.
C) QualityqAssuranceqEngagement.
D) AttestationqEngagement.
11) Theqsequentially-
numberedqpronouncementsqissuedqbyqtheqAuditingqStandardsqBoardqoverqaqperiodqofqyearsqareq
knownqas:
A) AuditingqStatementsqofqPositionq(ASPs).
B) AccountingqSeriesqReleasesq(ASRs).
C) StatementsqonqAuditingqStandardsq(SASs).
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