TEST BANK - Principles of Auditing and Other Assurance
Services 22nd Edition by Ray Whittington, Kurt Pany
,Table of Content
E E
ChapterE1ETheERoleEofEtheEPublicEAccountantEinEtheEAmericanEEconomyE Ch
apterE2EProfessionalEStandards
ChapterE3EProfessionalEEthicsE Chapt
erE4ELegalELiabilityEofECPAs
ChapterE5EAuditEEvidenceEandEDocumentation
ChapterE6EAuditEPlanning,EUnderstandingEtheEClient,EAssessingERisks,EandE
Responding
ChapterE7EInternalEControl
ChapterE8EConsiderationEofEInternalEControlEinEanEInformationETechnology
E Environment
ChapterE9EAuditESampling
ChapterE10ECashEandEFinancialEInvestments
ChapterE11EAccountsEReceivable,ENotesEReceivable,EandERevenueE Ch
apterE12EInventoriesEandECostEofEGoodsESold
ChapterE13EProperty,EPlant,EandEEquipment:EDepreciationEandEDepletionE
ChapterE14EAccountsEPayableEandEOtherELiabilities
ChapterE15EDebtEandEEquityECapital
ChapterE16EAuditingEOperationsEandECompletingEtheEAudit
ChapterE17EAuditors’EReports
ChapterE18EIntegratedEAuditsEofEPublicECompanies
ChapterE19EAdditionalEAssuranceEServices:EHistoricalEFinancialE Informati
on
ChapterE20EAdditionalEAssuranceEServices:EOtherEInformationE Chapt
erE21EInternal,EOperational,EandEComplianceEAuditing
, Full Test Bank for Principles of Auditing and Other Assurance
E E E E E E E E E
Services 22ndEdition by Ray Whittington, Kurt Pany
E E E E E E
AnswersEareEatEtheEendEofEeachEchapterE Chapt
erE1
StudentEname:E
1) AccountantsEareEregulatedEbyEaEvarietyEofEorganizations.EMatchEtheEstatemen
tsE withtheEmostEdirectlyErelatedEorganization:
● AccountingEandEReviewEServicesECommittee.
● AmericanEInstituteEofECertifiedEPublicEAccountants.
● AuditingEStandardsEBoard.
● FederalEAccountingEStandardsEAdvisoryEBoard.
● FinancialEAccountingEStandardsEBoard.
● GeneralEAccountingEOffice.
● GovernmentEAccountingEStandardsEBoard.
● PublicECompanyEAccountingEOversightEBoard.
● SecuritiesEandEExchangeECommission.
● StateEBoardsEofEAccountancy.
OrganizationsEmayEbeEusedEonce,EmoreEthanEonce,EorEnotEatEall.
Statements Organizations
A. DevelopsEaccountingEstandardsfor
E publicEandEnonpublicEcompanies.
B. DevelopsEaccountingEstandardsforEthe
U.S.EGovernment.
C. ImprovesEstandardsEofEfinancialE acco
untingEforEstateEandElocalEgovernmentE en
tities.
D. IssuesEauditingEstandardsEforpubli
cE companies.
E. IssuesECPAEcertificates.
F. PreparesEtheECPAEexam.
Organizations:EAmericanEInstituteEofECertifiedEPublicEAccountants,EFederalEAccountingE
StandardsEAdvisoryEBoard,EFinancialEAccountingEStandardsEBoard,EGovernmentE Account
ingEStandardsEBoard,EPublicECompanyEAccountingEOversightEBoard,EStateEBoardsE ofEAcc
ountancy.
, 2) TheESarbanes-
OxleyEActEofE2002EmadeEsignificantEreformsEforEpublicEcompaniesE andtheirEauditors.
a. DescribeEtheEeventsEthatEledEupEtoEtheEpassageEofEtheEAct.
b. DescribeEtheEmajorEchangesEmadeEbyEtheEAct.
3) ManyEpeopleEconfuseEtheEresponsibilitiesEofEtheEindependentEauditor
sE andEtheclient'sEmanagementEwithErespectEtoEauditedEfinancialEstatements.
a. DescribeEmanagement'sEresponsibilityEregardingEauditedEfinancialEstatements.
b. DescribeEtheEindependentEauditors'EresponsibilityEregardingEauditedEfinancialEstatements.
c. EvaluateEtheEfollowingEstatement:E"IfEtheEauditorsEdisagreeEwithEmanagemen
tE regardingEanEaccountingEprincipleEusedEinEtheEfinancialEstatements,EtheEauditorsEsh
ouldE expresstheirEviewsEinEtheEnotesEtoEtheEfinancialEstatements."
4) AnEinvestorEisEconsideringEinvestingEinEoneEofEtwoEcompanies.ETheEcompaniesEha
veE verysimilarEreportedEfinancialEpositionEandEresultsEofEoperations.EHowever,EonlyEone
EofE theEcompaniesEhasEitsEfinancialEstatementsEaudited.
a. DescribeE whatE createsE theE demandE forE anE auditE inEthisE situation.E IncludeE
aE discussionEofE howE auditedE financialE statementsE facilitateE thisE investmentE transacti
on,E andEtheEeffectEofEtheauditEonEbusinessEriskEandEinformationErisk.
b. IdentifyE theE potentialE consequencesE toE theE companyE ofE notE havingE it
sE financialstatementsEaudited.
5) AEsummaryEofEfindingsEratherEthanEassuranceEisEmostElikelyEtoEbeEincludedEinEa(n):
A) Agreed-uponEproceduresEreport.
B) CompilationEreport.
C) AuditEreport.
D) ReviewEreport.
Services 22nd Edition by Ray Whittington, Kurt Pany
,Table of Content
E E
ChapterE1ETheERoleEofEtheEPublicEAccountantEinEtheEAmericanEEconomyE Ch
apterE2EProfessionalEStandards
ChapterE3EProfessionalEEthicsE Chapt
erE4ELegalELiabilityEofECPAs
ChapterE5EAuditEEvidenceEandEDocumentation
ChapterE6EAuditEPlanning,EUnderstandingEtheEClient,EAssessingERisks,EandE
Responding
ChapterE7EInternalEControl
ChapterE8EConsiderationEofEInternalEControlEinEanEInformationETechnology
E Environment
ChapterE9EAuditESampling
ChapterE10ECashEandEFinancialEInvestments
ChapterE11EAccountsEReceivable,ENotesEReceivable,EandERevenueE Ch
apterE12EInventoriesEandECostEofEGoodsESold
ChapterE13EProperty,EPlant,EandEEquipment:EDepreciationEandEDepletionE
ChapterE14EAccountsEPayableEandEOtherELiabilities
ChapterE15EDebtEandEEquityECapital
ChapterE16EAuditingEOperationsEandECompletingEtheEAudit
ChapterE17EAuditors’EReports
ChapterE18EIntegratedEAuditsEofEPublicECompanies
ChapterE19EAdditionalEAssuranceEServices:EHistoricalEFinancialE Informati
on
ChapterE20EAdditionalEAssuranceEServices:EOtherEInformationE Chapt
erE21EInternal,EOperational,EandEComplianceEAuditing
, Full Test Bank for Principles of Auditing and Other Assurance
E E E E E E E E E
Services 22ndEdition by Ray Whittington, Kurt Pany
E E E E E E
AnswersEareEatEtheEendEofEeachEchapterE Chapt
erE1
StudentEname:E
1) AccountantsEareEregulatedEbyEaEvarietyEofEorganizations.EMatchEtheEstatemen
tsE withtheEmostEdirectlyErelatedEorganization:
● AccountingEandEReviewEServicesECommittee.
● AmericanEInstituteEofECertifiedEPublicEAccountants.
● AuditingEStandardsEBoard.
● FederalEAccountingEStandardsEAdvisoryEBoard.
● FinancialEAccountingEStandardsEBoard.
● GeneralEAccountingEOffice.
● GovernmentEAccountingEStandardsEBoard.
● PublicECompanyEAccountingEOversightEBoard.
● SecuritiesEandEExchangeECommission.
● StateEBoardsEofEAccountancy.
OrganizationsEmayEbeEusedEonce,EmoreEthanEonce,EorEnotEatEall.
Statements Organizations
A. DevelopsEaccountingEstandardsfor
E publicEandEnonpublicEcompanies.
B. DevelopsEaccountingEstandardsforEthe
U.S.EGovernment.
C. ImprovesEstandardsEofEfinancialE acco
untingEforEstateEandElocalEgovernmentE en
tities.
D. IssuesEauditingEstandardsEforpubli
cE companies.
E. IssuesECPAEcertificates.
F. PreparesEtheECPAEexam.
Organizations:EAmericanEInstituteEofECertifiedEPublicEAccountants,EFederalEAccountingE
StandardsEAdvisoryEBoard,EFinancialEAccountingEStandardsEBoard,EGovernmentE Account
ingEStandardsEBoard,EPublicECompanyEAccountingEOversightEBoard,EStateEBoardsE ofEAcc
ountancy.
, 2) TheESarbanes-
OxleyEActEofE2002EmadeEsignificantEreformsEforEpublicEcompaniesE andtheirEauditors.
a. DescribeEtheEeventsEthatEledEupEtoEtheEpassageEofEtheEAct.
b. DescribeEtheEmajorEchangesEmadeEbyEtheEAct.
3) ManyEpeopleEconfuseEtheEresponsibilitiesEofEtheEindependentEauditor
sE andEtheclient'sEmanagementEwithErespectEtoEauditedEfinancialEstatements.
a. DescribeEmanagement'sEresponsibilityEregardingEauditedEfinancialEstatements.
b. DescribeEtheEindependentEauditors'EresponsibilityEregardingEauditedEfinancialEstatements.
c. EvaluateEtheEfollowingEstatement:E"IfEtheEauditorsEdisagreeEwithEmanagemen
tE regardingEanEaccountingEprincipleEusedEinEtheEfinancialEstatements,EtheEauditorsEsh
ouldE expresstheirEviewsEinEtheEnotesEtoEtheEfinancialEstatements."
4) AnEinvestorEisEconsideringEinvestingEinEoneEofEtwoEcompanies.ETheEcompaniesEha
veE verysimilarEreportedEfinancialEpositionEandEresultsEofEoperations.EHowever,EonlyEone
EofE theEcompaniesEhasEitsEfinancialEstatementsEaudited.
a. DescribeE whatE createsE theE demandE forE anE auditE inEthisE situation.E IncludeE
aE discussionEofE howE auditedE financialE statementsE facilitateE thisE investmentE transacti
on,E andEtheEeffectEofEtheauditEonEbusinessEriskEandEinformationErisk.
b. IdentifyE theE potentialE consequencesE toE theE companyE ofE notE havingE it
sE financialstatementsEaudited.
5) AEsummaryEofEfindingsEratherEthanEassuranceEisEmostElikelyEtoEbeEincludedEinEa(n):
A) Agreed-uponEproceduresEreport.
B) CompilationEreport.
C) AuditEreport.
D) ReviewEreport.
