Solution Manual for Principles of Auditing and Other Assurance Services, 23rd Edition , by Ray Whittington, Kurt Pany, All Chapters 1 - 21, Complete Newest Version

SOLUTION MANUAL FOR
b6 b6




b6 Principles Of Auditing And Other Assurance Services
b6 b6 b6 b6 b6 b6




b6




23rd Edition By Ray Whittington Kurt
b6 b6 b6 b6 b6 b6




ALL Chapters (1 - 21)
b6 b6 b6 b6

,  Table of Contents b6 b6




Chapter 1: The Role of the Public Accountant in the AmericanEconomy
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6




Chapter 2: Professional Standards
b6 b6 b6




Chapter 3: Professional Ethics
b6 b6 b6




Chapter 4: Legal Liability of CPAs
b6 b6 b6 b6 b6




Chapter 5: Audit Evidence and Documentation
b6 b6 b6 b6 b6




Chapter 6: Audit Planning, Understanding the Client, AssessingRisks, and Responding
b6 b6 b6 b6 b6 b6 b6 b6 b6




Chapter 7: Internal Control
b6 b6 b6




Chapter 8: Consideration of Internal Control in an InformationTechnology Environment
b6 b6 b6 b6 b6 b6 b6 b6 b6




Chapter 9: Audit Sampling
b6 b6 b6




Chapter 10: Cash and Financial Investments
b6 b6 b6 b6 b6




Chapter 11: Accounts Receivable, Notes Receivable, andRevenue
b6 b6 b6 b6 b6 b6




Chapter 12: Inventories and Cost of Goods Sold
b6 b6 b6 b6 b6 b6 b6




Chapter 13: Property, Plant, and Equipment: Depreciation andDepletion
b6 b6 b6 b6 b6 b6 b6




Chapter 14: Accounts Payable and Other Liabilities
b6 b6 b6 b6 b6 b6




Chapter 15: Debt and Equity Capital
b6 b6 b6 b6 b6




Chapter 16: Auditing Operations and Completing the Audit
b6 b6 b6 b6 b6 b6 b6




Chapter 17: Auditors’ Reports
b6 b6 b6




Chapter 18: Integrated Audits of Public Companies
b6 b6 b6 b6 b6 b6




Chapter 19: Additional Assurance Services: Historical FinancialInformation
b6 b6 b6 b6 b6 b6




Chapter 20: Additional Assurance Services: Other Information
b6 b6 b6 b6 b6 b6




Chapter 21: Internal, Operational, and Compliance Auditing
b6 b6 b6 b6 b6 b6

,CHAPTER 1 b6




The Role of the b6 b6 b6




b6 Public Accountant in b6 b6




b6 the
American Economy b6




Review Questions
b6




1-1 The ―crisis of credibility‖ largely arose from the number of companies that restated their
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


previously issued financial statements as a result of accounting irregularities and fraud.
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


Especially responsible werethe very visible Enron and WorldCom fraud cases. Both companies
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


filed for bankruptcy and constituted the largest companies in American history to do so. The
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


extent of the accounting irregularities and fraud being investigated and disclosed brought into
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


question the effectiveness of financial statement audits. In addition, the criminal conviction of
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


Arthur Andersen, LLP, one of the then Big 5 accounting firms, on charges of destroying
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


documents related to the Enron case brought into question the ethics standards of the
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


profession.
b6




1-2 Assurance services are professional services that enhance the quality of information, or its
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


context, for decision-making. The two types are: (a) those that increase the reliability of
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


information and (b) those that involve putting information in a form or context that facilitates
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


decision-making.
b6




1-3 A financial statement audit is, by far, the most common type of attest engagement. The overall
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


assertion,made by management, most frequently is that the financial statements follow generally
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


accepted accounting principles.
b6 b6 b6




1-4 A large corporation with securities listed on a stock exchange is required by the rules of the
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


stock exchange and by the rules of the Securities and Exchange Commission to provide an
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


audit report with theannual financial statements furnished to its stockholders. It also is required
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


to engage the auditors to provide an opinion on its internal control. Apart from legal
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


requirements, however, a large listed corporation recognizes that it must maintain investor
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


confidence in the reliability of its financial statements and internal control over financial
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


reporting if it is to continue to be able to secure capital from the public. The report by a
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


firm of certified public accountants adds credibility to the financial statements prepared by the
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6


corporation. When a small family-owned enterprise elects to have an audit, the purpose
b6 b 6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6

, usually is to use the auditors' report to support an application for a bank loan.
b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6 b6