SOLUTION MANUAL FOR
K K
K Principles Of Auditing And Other Assurance
K K K K K
K Services K
23rd Edition By Ray Whittington Kurt
K K K K K K
ALL Chapters (1 - 21)
K K K K
, Table of Contents
K K
Chapter K1: KThe KRole Kof Kthe KPublic KAccountant Kin Kthe KAmericanEconomy
Chapter K2: KProfessional KStandards
Chapter K3: KProfessional KEthics
Chapter K4: KLegal KLiability Kof KCPAs
Chapter K5: KAudit KEvidence Kand KDocumentation
Chapter K6: KAudit KPlanning, KUnderstanding Kthe KClient, KAssessingRisks, Kand KResponding
Chapter K7: KInternal KControl
Chapter K8: KConsideration Kof KInternal KControl Kin Kan KInformationTechnology KEnvironment
Chapter K9: KAudit KSampling
Chapter K10: KCash Kand KFinancial KInvestments
Chapter K11: KAccounts KReceivable, KNotes KReceivable, KandRevenue
Chapter K12: KInventories Kand KCost Kof KGoods KSold
Chapter K13: KProperty, KPlant, Kand KEquipment: KDepreciation KandDepletion
Chapter K14: KAccounts KPayable Kand KOther KLiabilities
Chapter K15: KDebt Kand KEquity KCapital
Chapter K16: KAuditing KOperations Kand KCompleting Kthe KAudit
Chapter K17: KAuditors’ KReports
Chapter K18: KIntegrated KAudits Kof KPublic KCompanies
Chapter K19: KAdditional KAssurance KServices: KHistorical KFinancialInformation
Chapter K20: KAdditional KAssurance KServices: KOther KInformation
Chapter K21: KInternal, KOperational, Kand KCompliance KAuditing
,CHAPTER 1 K
The Role of the
K K K
K Public Accountant in
K K
K the
American Economy K
Review KQuestions
1-1 The K―crisis Kof Kcredibility‖ Klargely Karose Kfrom Kthe Knumber Kof Kcompanies Kthat Krestated Ktheir
Kpreviously Kissued Kfinancial Kstatements K as K a K result K of K accounting Kirregularities K and Kfraud.
K Especially Kresponsible KwereK the Kvery Kvisible KEnron Kand KWorldCom Kfraud Kcases. KBoth
Kcompanies K filed K for K bankruptcy Kand Kconstituted Kthe Klargest K companies K in KAmerican Khistory Kto
Kdo Kso. K The Kextent K of K the Kaccounting Kirregularities K and Kfraud Kbeing Kinvestigated Kand Kdisclosed
Kbrought K into Kquestion Kthe Keffectiveness K of K financial Kstatement K audits. K In Kaddition, Kthe Kcriminal
Kconviction Kof KArthur KAndersen, KLLP, Kone Kof Kthe Kthen KBig K5 K accounting Kfirms, Kon Kcharges K of
K destroying Kdocuments K related Kto K the KEnron Kcase Kbrought K into Kquestion Kthe Kethics K standards K of
Kthe Kprofession.
1-2 Assurance Kservices Kare Kprofessional Kservices Kthat Kenhance Kthe Kquality Kof Kinformation, Kor Kits
Kcontext, Kfor Kdecision-making. KThe Ktwo Ktypes Kare: K(a) Kthose Kthat Kincrease Kthe Kreliability Kof
Kinformation Kand K(b) Kthose Kthat Kinvolve Kputting Kinformation Kin Ka Kform Kor Kcontext Kthat
Kfacilitates Kdecision-making.
1-3 A Kfinancial Kstatement K audit K is, Kby Kfar, Kthe Kmost K common Ktype Kof K attest K engagement. K The
Koverall Kassertion,K
made Kby Kmanagement, Kmost Kfrequently Kis Kthat Kthe Kfinancial Kstatements Kfollow
Kgenerally Kaccepted Kaccounting Kprinciples.
1-4 A Klarge Kcorporation Kwith Ksecurities Klisted Kon Ka Kstock Kexchange Kis Krequired Kby Kthe Krules Kof Kthe
Kstock Kexchange Kand Kby Kthe Krules K of K the KSecurities K and KExchange KCommission Kto Kprovide Kan
Kaudit K report K with KtheK annual Kfinancial Kstatements K furnished Kto Kits K stockholders. K It K also Kis
K required Kto Kengage Kthe Kauditors K to Kprovide Kan Kopinion Kon Kits Kinternal Kcontrol. KApart Kfrom
Klegal Krequirements, Khowever, Ka Klarge Klisted Kcorporation Krecognizes K that K it K must K maintain
Kinvestor Kconfidence Kin K the Kreliability Kof K its K financial Kstatements K and K internal K control K over
K financial K reporting K if K it K is K to K continue K to K be K able K to K secure K capital Kfrom Kthe Kpublic. K The
Kreport K by Ka K firm Kof K certified Kpublic Kaccountants K adds K credibility Kto Kthe Kfinancial Kstatements
K prepared Kby Kthe Kcorporation. K When Ka K small Kfamily-owned Kenterprise Kelects K to Khave Kan Kaudit,
, the Kpurpose Kusually Kis Kto Kuse Kthe Kauditors' Kreport Kto Ksupport Kan Kapplication K for Ka Kbank Kloan.
K
K K
K Principles Of Auditing And Other Assurance
K K K K K
K Services K
23rd Edition By Ray Whittington Kurt
K K K K K K
ALL Chapters (1 - 21)
K K K K
, Table of Contents
K K
Chapter K1: KThe KRole Kof Kthe KPublic KAccountant Kin Kthe KAmericanEconomy
Chapter K2: KProfessional KStandards
Chapter K3: KProfessional KEthics
Chapter K4: KLegal KLiability Kof KCPAs
Chapter K5: KAudit KEvidence Kand KDocumentation
Chapter K6: KAudit KPlanning, KUnderstanding Kthe KClient, KAssessingRisks, Kand KResponding
Chapter K7: KInternal KControl
Chapter K8: KConsideration Kof KInternal KControl Kin Kan KInformationTechnology KEnvironment
Chapter K9: KAudit KSampling
Chapter K10: KCash Kand KFinancial KInvestments
Chapter K11: KAccounts KReceivable, KNotes KReceivable, KandRevenue
Chapter K12: KInventories Kand KCost Kof KGoods KSold
Chapter K13: KProperty, KPlant, Kand KEquipment: KDepreciation KandDepletion
Chapter K14: KAccounts KPayable Kand KOther KLiabilities
Chapter K15: KDebt Kand KEquity KCapital
Chapter K16: KAuditing KOperations Kand KCompleting Kthe KAudit
Chapter K17: KAuditors’ KReports
Chapter K18: KIntegrated KAudits Kof KPublic KCompanies
Chapter K19: KAdditional KAssurance KServices: KHistorical KFinancialInformation
Chapter K20: KAdditional KAssurance KServices: KOther KInformation
Chapter K21: KInternal, KOperational, Kand KCompliance KAuditing
,CHAPTER 1 K
The Role of the
K K K
K Public Accountant in
K K
K the
American Economy K
Review KQuestions
1-1 The K―crisis Kof Kcredibility‖ Klargely Karose Kfrom Kthe Knumber Kof Kcompanies Kthat Krestated Ktheir
Kpreviously Kissued Kfinancial Kstatements K as K a K result K of K accounting Kirregularities K and Kfraud.
K Especially Kresponsible KwereK the Kvery Kvisible KEnron Kand KWorldCom Kfraud Kcases. KBoth
Kcompanies K filed K for K bankruptcy Kand Kconstituted Kthe Klargest K companies K in KAmerican Khistory Kto
Kdo Kso. K The Kextent K of K the Kaccounting Kirregularities K and Kfraud Kbeing Kinvestigated Kand Kdisclosed
Kbrought K into Kquestion Kthe Keffectiveness K of K financial Kstatement K audits. K In Kaddition, Kthe Kcriminal
Kconviction Kof KArthur KAndersen, KLLP, Kone Kof Kthe Kthen KBig K5 K accounting Kfirms, Kon Kcharges K of
K destroying Kdocuments K related Kto K the KEnron Kcase Kbrought K into Kquestion Kthe Kethics K standards K of
Kthe Kprofession.
1-2 Assurance Kservices Kare Kprofessional Kservices Kthat Kenhance Kthe Kquality Kof Kinformation, Kor Kits
Kcontext, Kfor Kdecision-making. KThe Ktwo Ktypes Kare: K(a) Kthose Kthat Kincrease Kthe Kreliability Kof
Kinformation Kand K(b) Kthose Kthat Kinvolve Kputting Kinformation Kin Ka Kform Kor Kcontext Kthat
Kfacilitates Kdecision-making.
1-3 A Kfinancial Kstatement K audit K is, Kby Kfar, Kthe Kmost K common Ktype Kof K attest K engagement. K The
Koverall Kassertion,K
made Kby Kmanagement, Kmost Kfrequently Kis Kthat Kthe Kfinancial Kstatements Kfollow
Kgenerally Kaccepted Kaccounting Kprinciples.
1-4 A Klarge Kcorporation Kwith Ksecurities Klisted Kon Ka Kstock Kexchange Kis Krequired Kby Kthe Krules Kof Kthe
Kstock Kexchange Kand Kby Kthe Krules K of K the KSecurities K and KExchange KCommission Kto Kprovide Kan
Kaudit K report K with KtheK annual Kfinancial Kstatements K furnished Kto Kits K stockholders. K It K also Kis
K required Kto Kengage Kthe Kauditors K to Kprovide Kan Kopinion Kon Kits Kinternal Kcontrol. KApart Kfrom
Klegal Krequirements, Khowever, Ka Klarge Klisted Kcorporation Krecognizes K that K it K must K maintain
Kinvestor Kconfidence Kin K the Kreliability Kof K its K financial Kstatements K and K internal K control K over
K financial K reporting K if K it K is K to K continue K to K be K able K to K secure K capital Kfrom Kthe Kpublic. K The
Kreport K by Ka K firm Kof K certified Kpublic Kaccountants K adds K credibility Kto Kthe Kfinancial Kstatements
K prepared Kby Kthe Kcorporation. K When Ka K small Kfamily-owned Kenterprise Kelects K to Khave Kan Kaudit,
, the Kpurpose Kusually Kis Kto Kuse Kthe Kauditors' Kreport Kto Ksupport Kan Kapplication K for Ka Kbank Kloan.
K
