TEST BANK - Principles of Auditing and Other Assurance Services 22nd Edition by Ray Whittington, Kurt Pany| Complete Verified Chapter's Latest Newest Version

TEST BANK - Principles of Auditing and Other Assurance
Services 22nd Edition by Ray Whittington, Kurt Pany

,Table of Content BW BW




Chapter 1 The Role of the Public Accountant in the American Economy Cha
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pter 2 Professional Standards
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Chapter 3 Professional Ethics Chapter
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4 Legal Liability of CPAs
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Chapter 5 Audit Evidence and Documentation
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Chapter 6 Audit Planning, Understanding the Client, Assessing Risks, and R
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esponding
Chapter 7 Internal ControlBW BW BW




Chapter 8 Consideration of Internal Control in an Information Technology
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Environment
Chapter 9 Audit Sampling BW BW BW




Chapter 10 Cash and Financial Investments
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Chapter 11 Accounts Receivable, Notes Receivable, and Revenue Chapt
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er 12 Inventories and Cost of Goods Sold
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Chapter 13 Property, Plant, and Equipment: Depreciation and Depletion Cha
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pter 14 Accounts Payable and Other Liabilities
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Chapter 15 Debt and Equity Capital
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Chapter 16 Auditing Operations and Completing the Audit
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Chapter 17 Auditors’ Reports
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Chapter 18 Integrated Audits of Public Companies
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Chapter 19 Additional Assurance Services: Historical Financial Information
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Chapter 20 Additional Assurance Services: Other Information Chapter
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21 Internal, Operational, and Compliance Auditing
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, Full Test Bank for Principles of Auditing and Other Assuranc
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e
Services 22ndEdition by Ray Whittington, Kurt Pany
Answers are at the end of each chapter Chapte
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Student name: BW BW




1) Accountants are regulated by a variety of organizations. Match the statements
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B W withthe most directly related organization:
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● Accounting and Review Services Committee.BW BW BW BW




● American Institute of Certified Public Accountants.
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● Auditing Standards Board. BW BW




● Federal Accounting Standards Advisory Board.
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● Financial Accounting Standards Board.
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● General Accounting Office.BW BW




● Government Accounting Standards Board. BW BW BW




● Public Company Accounting Oversight Board.
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● Securities and Exchange Commission.
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● State Boards of Accountancy.
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Organizations may be used once, more than once, or not at all.
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Statements Organizations
A. Develops accounting standardsfor BW BW B W



public and nonpublic companies.
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B. Develops accounting standardsfor the
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U.S. Government.
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C. Improves standards of financial accou BW BW BW B W



nting for state and local government entit
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ies.
D. Issues auditing standards forpublic
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companies.
E. Issues CPA certificates.BW BW




F. Prepares the CPA exam. BW BW BW




Organizations: American Institute of Certified Public Accountants, Federal Accounting
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Standards Advisory Board, Financial Accounting Standards Board, Government Accounti
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ng Standards Board, Public Company Accounting Oversight Board, State Boards of Accou
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ntancy.

, 2) The Sarbanes- BW



Oxley Act of 2002 made significant reforms for public companies andtheir auditors.
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a. Describe the events that led up to the passage of the Act.
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b. Describe the major changes made by the Act.
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3) Many people confuse the responsibilities of the independent auditors
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Wand theclient's management with respect to audited financial statements.
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a. Describe management's responsibility regarding audited financial statements.
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b. Describe the independent auditors' responsibility regarding audited financial statements.
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c. Evaluate the following statement: "If the auditors disagree with management
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Wregarding an accounting principle used in the financial statements, the auditors shoul
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d expresstheir views in the notes to the financial statements."
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4) An investor is considering investing in one of two companies. The companies hav
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e verysimilar reported financial position and results of operations. However, only one of
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Wthe companies has its financial statements audited.
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a. Describe what creates the demand for an audit in this situation. Incl
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ude a discussion of how audited financial statements facilitate this investment
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transaction, and the effect of theaudit on business risk and information risk.
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b. Identify the potential consequences to the company of not havin
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g its financialstatements audited.
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5) A summary of findings rather than assurance is most likely to be included in a(n):
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A) Agreed-upon procedures report. BW BW




B) Compilation report. BW




C) Audit report. BW




D) Review report. BW