TEST BANK for Principles of Auditing and Other Assurance Services 2024 Release by Whittington (All Chapters included)100% verified TEST BANK for Principles of Auditing and Other Assurance Services 2024 Release by Whittington (All Chapters included)100% verified TEST BANK for Principles of Auditing ...
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 regarding
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!# an accounting principle used in the financial statements, the auditors should express their views
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!# in the notes to the financial statements."
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4) An investor is considering investing in one of two companies. The companies have very
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!# similar reported financial position and results of operations. However, only one of the
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!# companies has its financial statements audited.
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a. Describe what creates the demand for an audit in this situation. Include a discussion of
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!# how audited financial statements facilitate this investment transaction, and the effect of the
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!# audit on business risk and information risk.
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b. Identify the potential consequences to the company of not having its financial statements
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!# audited.
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. !# !#
B) Compilation report. !#
C) Audit report. !#
D) Review report. !#
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6) The Statements on Auditing Standards have been issued by the:
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A+ Page 3 !#
, A) Auditing Standards Board. !# !#
B) Financial Accounting Standards Board.
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C) Securities and Exchange Commission.
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D) Federal Bureau of Investigation.
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7) The risk that a company’s financial statements will materially depart from generally
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!# accepted accounting principles is referred to as:
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A) Business Risk. !#
B) Information Risk. !#
C) Detection Risk. !#
D) Document Risk. !#
8) Historically, which of the following has the AICPA been most concerned with
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!# providing?
A) Auditing standards. !#
B) Professional guidance for regulating financial markets.
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C) Internal auditing standards.
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D) Staff support to Congress.
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A+ Page 4
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