TEST BANK FOR PRINCIPLES OF
AUDITING AND OTHER ASSURANCE
SERVICES: 2024 22ND EDITION BY
WHITTINGTON (ALL CHAPTERS 1–
21) LATEST EDITION 2025/2026
Version 1 1
,TABLE OF CONTENTS
1. The Role of the Public Accountant in the American Economy
2. Professional Standards
3. Professional Ethics
4. Legal Liability of CPAs
5. Audit Evidence and Documentation
6. Audit Planning, Understanding the Client, Assessing Risks, and
Responding
7. Internal Control
8. Consideration of Internal Control in an Information Technology
Environment
9. Audit Sampling
10. Cash and Financial Investments
11. Accounts Receivable, Notes Receivable, and Revenue
12. Inventories and Cost of Goods Sold
13. Property, Plant, and Equipment: Depreciation and Depletion
14. Accounts Payable and Other Liabilities
15. Debt and Equity Capital
16. Auditing Operations and Completing the Audit
17. Auditors’ Reports
18. Integrated Audits of Public Companies
19. Additional Assurance Services: Historical Financial
Information
20. Additional Assurance Services: Other Information
21. Internal, Operational, and Compliance Auditing
Version 1 2
,FULL TEST BANK FOR PRINCIPLES OF AUDITING AND OTHER ASSURANCE SERVICES 22ND
EDITION BY RAY WHITTINGTON, KURT PANY
ANSWERS ARE AT THE END OF EACH CHAPTER
Chapter 1
Student Name:
1) Accountants Are Regulated By A Variety Of Organizations. Match The Statements With
The Most Directly Related Organization:
● Accounting And Review Services Committee.
● American Institute Of Certified Public Accountants.
● Auditing Standards Board.
● Federal Accounting Standards Advisory Board.
● Financial Accounting Standards Board.
● General Accounting Office.
● Government Accounting Standards Board.
● Public Company Accounting Oversight Board.
● Securities And Exchange Commission.
● State Boards Of Accountancy.
Organizations May Be Used Once, More Than Once, Or Not At All.
Statements Organizations
A. Develops Accounting Standards
For Public And Nonpublic Companies.
B. Develops Accounting Standards For The U.S.
Government.
C. Improves Standards Of Financial Accounting For
State And Local
Government Entities.
D. Issues Auditing Standards For Public Companies.
E. Issues CPA Certificates.
F. Prepares The CPA Exam.
Organizations: American Institute Of Certified Public Accountants, Federal Accounting Standards
Advisory Board, Financial Accounting Standards Board, Government Accounting Standards Board,
Public Company Accounting Oversight Board, State Boards Of Accountancy.
Version 1 3
, 2) The Sarbanes-Oxley Act Of 2002 Made Significant Reforms For Public Companies And Their
Auditors.
a. Describe The Events That Led Up To The Passage Of The Act.
b. Describe The Major Changes Made By The Act.
3) Many People Confuse The Responsibilities Of The Independent Auditors And The Client's
Management With Respect To Audited Financial Statements.
a. Describe Management's Responsibility Regarding Audited Financial Statements.
b. Describe The Independent Auditors' Responsibility Regarding Audited Financial Statements.
c. Evaluate The Following Statement: "If The Auditors Disagree With Management Regarding An
Accounting Principle Used In The Financial Statements, The Auditors Should Express Their Views
In The Notes To The Financial Statements."
4) An Investor Is Considering Investing In One Of Two Companies. The Companies Have Very
Similar Reported Financial Position And Results Of Operations. However, Only One Of The
Companies Has Its Financial Statements Audited.
a. Describe What Creates The Demand For An Audit In This Situation. Include A Discussion Of
How Audited Financial Statements Facilitate This Investment Transaction, And The Effect Of The
Audit On Business Risk And Information Risk.
b. Identify The Potential Consequences To The Company Of Not Having Its Financial
Statements Audited.
5) A Summary Of Findings Rather Than Assurance Is Most Likely To Be Included In A(N):
A) Agreed-Upon Procedures Report.
B) Compilation Report.
C) Audit Report.
D) Review Report.
Version 1 4
AUDITING AND OTHER ASSURANCE
SERVICES: 2024 22ND EDITION BY
WHITTINGTON (ALL CHAPTERS 1–
21) LATEST EDITION 2025/2026
Version 1 1
,TABLE OF CONTENTS
1. The Role of the Public Accountant in the American Economy
2. Professional Standards
3. Professional Ethics
4. Legal Liability of CPAs
5. Audit Evidence and Documentation
6. Audit Planning, Understanding the Client, Assessing Risks, and
Responding
7. Internal Control
8. Consideration of Internal Control in an Information Technology
Environment
9. Audit Sampling
10. Cash and Financial Investments
11. Accounts Receivable, Notes Receivable, and Revenue
12. Inventories and Cost of Goods Sold
13. Property, Plant, and Equipment: Depreciation and Depletion
14. Accounts Payable and Other Liabilities
15. Debt and Equity Capital
16. Auditing Operations and Completing the Audit
17. Auditors’ Reports
18. Integrated Audits of Public Companies
19. Additional Assurance Services: Historical Financial
Information
20. Additional Assurance Services: Other Information
21. Internal, Operational, and Compliance Auditing
Version 1 2
,FULL TEST BANK FOR PRINCIPLES OF AUDITING AND OTHER ASSURANCE SERVICES 22ND
EDITION BY RAY WHITTINGTON, KURT PANY
ANSWERS ARE AT THE END OF EACH CHAPTER
Chapter 1
Student Name:
1) Accountants Are Regulated By A Variety Of Organizations. Match The Statements With
The Most Directly Related Organization:
● Accounting And Review Services Committee.
● American Institute Of Certified Public Accountants.
● Auditing Standards Board.
● Federal Accounting Standards Advisory Board.
● Financial Accounting Standards Board.
● General Accounting Office.
● Government Accounting Standards Board.
● Public Company Accounting Oversight Board.
● Securities And Exchange Commission.
● State Boards Of Accountancy.
Organizations May Be Used Once, More Than Once, Or Not At All.
Statements Organizations
A. Develops Accounting Standards
For Public And Nonpublic Companies.
B. Develops Accounting Standards For The U.S.
Government.
C. Improves Standards Of Financial Accounting For
State And Local
Government Entities.
D. Issues Auditing Standards For Public Companies.
E. Issues CPA Certificates.
F. Prepares The CPA Exam.
Organizations: American Institute Of Certified Public Accountants, Federal Accounting Standards
Advisory Board, Financial Accounting Standards Board, Government Accounting Standards Board,
Public Company Accounting Oversight Board, State Boards Of Accountancy.
Version 1 3
, 2) The Sarbanes-Oxley Act Of 2002 Made Significant Reforms For Public Companies And Their
Auditors.
a. Describe The Events That Led Up To The Passage Of The Act.
b. Describe The Major Changes Made By The Act.
3) Many People Confuse The Responsibilities Of The Independent Auditors And The Client's
Management With Respect To Audited Financial Statements.
a. Describe Management's Responsibility Regarding Audited Financial Statements.
b. Describe The Independent Auditors' Responsibility Regarding Audited Financial Statements.
c. Evaluate The Following Statement: "If The Auditors Disagree With Management Regarding An
Accounting Principle Used In The Financial Statements, The Auditors Should Express Their Views
In The Notes To The Financial Statements."
4) An Investor Is Considering Investing In One Of Two Companies. The Companies Have Very
Similar Reported Financial Position And Results Of Operations. However, Only One Of The
Companies Has Its Financial Statements Audited.
a. Describe What Creates The Demand For An Audit In This Situation. Include A Discussion Of
How Audited Financial Statements Facilitate This Investment Transaction, And The Effect Of The
Audit On Business Risk And Information Risk.
b. Identify The Potential Consequences To The Company Of Not Having Its Financial
Statements Audited.
5) A Summary Of Findings Rather Than Assurance Is Most Likely To Be Included In A(N):
A) Agreed-Upon Procedures Report.
B) Compilation Report.
C) Audit Report.
D) Review Report.
Version 1 4
