Test Bank for Principles of Auditing and Other Assurance Services, 22nd Edition – Whittington & Pany | Complete, Verified, and Updated

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Test Bank for Principles of Auditing and Other
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Assurance Services 22nd Edition by Ray Whitti
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ngton, Kurt Pany 2024 A+
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Answers25are25at25the25end25of25each25chapter25Chapter251

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Student25name:
1)
Accountants25are25regulated25by25a25variety25of25organizations.25Match25the25statements25w
ith25the25most25directly25related25organization:
● Accounting25and25Review25Services25Committee.
● American25Institute25of25Certified25Public25Accountants.
● Auditing25Standards25Board.
● Federal25Accounting25Standards25Advisory25Board.
● Financial25Accounting25Standards25Board.
● General25Accounting25Office.
● Government25Accounting25Standards25Board.
● Public25Company25Accounting25Oversight25Board.
● Securities25and25Exchange25Commission.
● State25Boards25of25Accountancy.
Organizations25may25be25used25once,25more25than25once,25or25not25at25all.
Statements Organizations
A.25Develops25accounting25standards
for25public25and25nonpublic25companies.
B.25Develops25accounting25standards25for25the25U.S.25Government.
C.25Improves25standards25of25financial25accounting25for25state25and25local
government25entities.
D.25Issues25auditing25standards25for25public25companies.
E.25Issues25CPA25certificates.
F.25Prepares25the25CPA25exam.


Organizations:25American25Institute25of25Certified25Public25Accountants,25Federal25Accounting25S
tandards25Advisory25Board,25Financial25Accounting25Standards25Board,25Government25Accountin
g25Standards25Board,25Public25Company25Accounting25Oversight25Board,25State25Boards25of25Acc
ountancy.
25




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2) The25Sarbanes-
Oxley25Act25of25200225made25significant25reforms25for25public25companies25and25their25auditors.
a. Describe25the25events25that25led25up25to25the25passage25of25the25Act.
b. Describe25the25major25changes25made25by25the25Act.




3)
Many25people25confuse25the25responsibilities25of25the25independent25auditors25and25the25cli
ent's25management25with25respect25to25audited25financial25statements.
a. Describe25management's25responsibility25regarding25audited25financial25statements.
b.
Describe25the25independent25auditors'25responsibility25regarding25audited25financial25state
ments.
c.
Evaluate25the25following25statement:25"If25the25auditors25disagree25with25management25reg
arding25an25accounting25principle25used25in25the25financial25statements,25the25auditors25should25exp
ress25their25views25in25the25notes25to25the25financial25statements."




4)
An25investor25is25considering25investing25in25one25of25two25companies.25The25companies25h
ave25very25similar25reported25financial25position25and25results25of25operations.25However,25only25on
e25of25the25companies25has25its25financial25statements25audited.
a.
Describe25what25creates25the25demand25for25an25audit25in25this25situation.25Include25a25discu
ssion25of25how25audited25financial25statements25facilitate25this25investment25transaction,25and25the25
effect25of25the25audit25on25business25risk25and25information25risk.
b.
Identify25the25potential25consequences25to25the25company25of25not25having25its25financial25st
atements25audited.

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5)
A25summary25of25findings25rather25than25assurance25is25most25likely25to25be25included25in25a
(n):


A) Agreed-upon25procedures25report.
B) Compilation25report.
C) Audit25report.
D) Review25report.
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6) The25Statements25on25Auditing25Standards25have25been25issued25by25the:


A) Auditing25Standards25Board.
B) Financial25Accounting25Standards25Board.
C) Securities25and25Exchange25Commission.
D) Federal25Bureau25of25Investigation.




7)
The25risk25that25a25company’s25financial25statements25will25materially25depart25from25gener
ally25accepted25accounting25principles25is25referred25to25as:


A) Business25Risk.
B) Information25Risk.
C) Detection25Risk.
D) Document25Risk.




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