100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
SOLUTION MANUAL for Principles Of Auditing and Other Assurance Services 22rd Edition by Whittington Kurt ALL Chapters 1 – 21 covered $21.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. Principles Of Auditing & Other Assurance 23rd Ed
  4.  
  5. Principles of Auditing & Other Assurance 23rd ed

Exam (elaborations)

SOLUTION MANUAL for Principles Of Auditing and Other Assurance Services 22rd Edition by Whittington Kurt ALL Chapters 1 – 21 covered
 1 view  0 purchase
  • Course
  • Principles of Auditing & Other Assurance 23rd ed
  • Institution
  • Principles Of Auditing & Other Assurance 23rd Ed

SOLUTION MANUAL for Principles Of Auditing and Other Assurance Services 22rd Edition by Whittington Kurt ALL Chapters 1 – 21 covered SOLUTION MANUAL for Principles Of Auditing and Other Assurance Services 22rd Edition by Whittington Kurt ALL Chapters 1 – 21 covered SOLUTION MANUAL for Princip...

[Show more]

Preview 4 out of 503  pages

Document information

  • October 12, 2024
  • 503
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • Principles of Auditing & Other Assurance 23rd ed
  • Principles of Auditing & Other Assurance 23rd ed

Seller

avatar-seller
TIFFACADEMICS

Reviews received

Content preview

SOLUTION MANUAL
Principles Of Auditing and Other Assurance Services
23rd Edition by Whittington Kurt
ALL Chapters 1 – 21 covered

, • Table of Contents
v v




Chapterv1:vThevRolevofvthevPublicvAccountantvinvthevAmericanEconomy

Chapterv2:vProfessionalvStandards

Chapterv3:vProfessionalvEthics

Chapterv4:vLegalvLiabilityvofvCPAs

Chapterv5:vAuditvEvidencevandvDocumentation

Chapterv6:vAuditvPlanning,vUnderstandingvthevClient,vAssessingRisks,vandvResponding

Chapterv7:vInternalvControl

Chapterv8:vConsiderationvofvInternalvControlvinvanvInformationTechnologyvEnvironment

Chapterv9:vAuditvSampling

Chapterv10:vCashvandvFinancialvInvestments

Chapterv11:vAccountsvReceivable,vNotesvReceivable,vandRevenue

Chapterv12:vInventoriesvandvCostvofvGoodsvSold

Chapterv13:vProperty,vPlant,vandvEquipment:vDepreciationvandDepletion

Chapterv14:vAccountsvPayablevandvOthervLiabilities

Chapterv15:vDebtvandvEquityvCapital

Chapterv16:vAuditingvOperationsvandvCompletingvthevAudit

Chapterv17:vAuditors’vReports

Chapterv18:vIntegratedvAuditsvofvPublicvCompanies

Chapterv19:vAdditionalvAssurancevServices:vHistoricalvFinancialInformation

Chapterv20:vAdditionalvAssurancevServices:vOthervInformation

Chapterv21:vInternal,vOperational,vandvCompliancevAuditing

,CHAPTER 1 v




The Role of the Publi
v v v v




c Accountant in the
v v v



American Economy v




Review vQuestions

1-1 Thev―crisisv ofvcredibility‖vlargelyvarosevfromvthevnumbervofvcompaniesv thatvrestatedvtheirvpreviouslyvissued
vfinancialv statementsv asv av resultv ofv accountingv irregularitiesv andvfraud.v Especiallyvresponsiblevwerevthevver

yvvisiblevEnronvandvWorldComvfraudv cases.v Bothvcompaniesv filedv forv bankruptcyvandvconstitutedvthevlarg
estv companiesv invAmericanv historyvtovdovso.v Thevextentv ofv thevaccountingvirregularitiesv andvfraudvbeingvin
vestigatedvandv disclosedvbroughtv intovquestionvtheveffectivenessvofvfinancialvstatementv audits.v Invaddition,v
thevcriminalvconvictionvofv Arthurv Andersen,vLLP,vonevofv thevthenvBigv5v accountingvfirms,vonvchargesv ofvd
estroyingvdocumentsv relatedvtov thevEnronvcasevbroughtv intovquestionvthevethicsv standardsv ofvthevprofessio
n.

1-2 Assurancevservicesvarevprofessionalvservicesvthatvenhancevthevqualityvofvinformation,vorvitsvcontext,vforv
decision-
making.vThevtwovtypesvare:v(a)vthosevthatvincreasevthevreliabilityvofvinformationvandv(b)vthosevthatvinvol
ve vputtingvinformationvinvavformvorvcontextvthatvfacilitatesvdecision-making.

1-3 Avfinancialv statementv auditv is,v byvfar,v thevmostv commonv typevofvattestv engagement.v Thevoverallv assertion,v
madevbyvmanagement,vmostvfrequentlyvisvthatvthevfinancialvstatementsvfollowvgenerallyvacceptedvaccounti
ngvprinciples.

1-4 Avlargevcorporationvwithvsecuritiesv listedvonvav stockvexchangevisvrequiredvbyvthevrulesv ofv thevstockvexchang
evandv byvthevrulesv ofv thevSecuritiesv andvExchangevCommissionv tov providevanv auditv reportv withv thevannualvfi
nancialvstatementsv furnishedvtovitsv stockholders.v Itv alsovisvrequiredvtovengagevthevauditorsv tovprovidevanvopi
nionvonvitsvinternalvcontrol.v Apartvfromvlegalvrequirements,vhowever,vavlargev listedvcorporationvrecognize
sv thatv itv mustv maintainvinvestorvconfidencevinv thevreliabilityvofv itsvfinancialvstatementsv andv internalvcontrolv
overv financialvreportingv ifv itv isv tovcontinuev tovbevablev tov securevcapitalvfromvthevpublic.v Thevreportv byvavfir
mvofvcertifiedvpublicvaccountantsvaddsvcredibilityvtovthevfinancialvstatementsv preparedv byvthevcorporation.v
Whenv av smallvfamily-
ownedventerprisevelectsv tov havevanv audit,vthevpurposevusuallyvisv tovusevthevauditors'vreportv tovsupportvanvapp
licationv forvav bankvloan.

, 1-5 Avreportv byvanv independentv publicvaccountantv concerningvthevfairnessv ofvavcompany'sv financialvstatementsvi
svcommonlyvrequiredvinvthevfollowingvsituations:

(1) Applicationvforv avbankv loan.
(2) Establishingv creditv forv purchasevofv merchandise,vequipment,v orv otherv assets.
(3) Reportingv operatingvresults,vfinancialv position,vandv cashv flowsv tov absenteev ownersv (stockholdersv
or vpartners).
(4) Issuancevofv securitiesv byvav corporation.
(5) Annualvfinancialv statementsv byvavcorporationvwithv securitiesv listedvonv av stockvexchangevorv tradedv
overvthevcounter.
(6) Salevofvanvongoingvbusiness.
(7) Terminationv ofv av partnership.

1-6 Tovaddvcredibilityvtovfinancialvstatementsv isv tovincreasevthevlikelihoodvthatv theyvhavevbeenvpreparedvfollowi
ngvthevappropriatevcriteria,v usuallyvgenerallyvacceptedvaccountingv principles.v Asv such,v anv increasevinvcredi
bilityvresultsv invfinancialvstatementsv thatvcanvbevbelievedvandvreliedvuponvbyvthirdvparties.

1-7 Businessv riskv isv thevriskv thatv thevinvestmentv willv bevimpairedvbecausevav companyvinvestedvinv isv unablevtov
meetv itsv financialvobligationsv duevtoveconomicvconditionsvorv poorv managementv decisions.v Informationvris
kvisvthevriskvthatvthevinformationvusedvtovassessvbusinessvriskvisvnotvaccurate.vAuditorsvcanv directlyvredu
cevinformationvrisk,vbutvhavevonlyvlimitedveffectvonvbusinessv risk.

1-8 Atv thevbeginningvofv thevcentury,vthevprincipalvobjectivevofvauditingvwasv thevpreventionvandvdetectionvofvfra
ud.v Auditv workvcenteredvonvthevbalancevsheet,vbecausevthevincomevstatementv wasvregardedvasv highlyvconfi
dentialv andv notv forv publicv disclosure.v Today,v thev principalv objectivev ofv auditingv isv tovformvanvopinionvonvt
hevfairnessv ofvfinancialvstatementsvandvtheirvconformityvwithvgenerallyvacceptedvaccountingvprinciples.v But
v thevprofessionalv standardsv alsov requirevthatv anvauditv bevdesignedv tovprovidevreasonablevassurance vofv detect

ingv materialv misstatements,v duev toverrorsv orv fraud.v Particularv emphasisv isv placedv onvthevincomevstatementv
whichvisv ofv greatv importancevtovinvestors.v Auditingvtodayvalsovhasv thevobjectivesv ofvmeetingvthevrequireme
ntsv ofv thevSecuritiesv andvExchangevCommissionv(SEC)v andvthevPublicvCompanyvAccountingvOversightv B
oardvforvpublicvcompanies.

1-9 Thevstatementv isv incorrect.vThevincreasingv integratedv databasesv ofv today,valongv withv availablevauditv
proceduresvmakevauditedventire vpopulationsvavpossibility vinvmanyvsituations.

1-10 Anvoperationalvauditv attemptsv tovmeasurevtheveffectivenessv andvefficiencyvofv av specificvunitv ofv anvorgan
ization.v Itv involvesv morevsubjectivevjudgmentsv thanvav compliancevauditv orvanvauditv ofv financialvstateme
ntsv becausevthevcriteriav ofveffectivenessv andv efficiencyvofvdepartmentalv performancevarevnotv asvclearlyv
establishedvasvarevmanyvlawsvandvregulationsv orv generallyvacceptedvaccountingvprinciples.
Thevreportv preparedv afterv completionv ofv anv operationalv auditv isv usuallyvdirectedv tov managementvof
vthevorganizationvinvwhichvthe vaudit vworkvwasvdone.




1-11 Avcompliancevauditv isv anvauditv tovdeterminevwhethervfinancialvreportsv orvothervassertionsvarev invcomplian
cevwithvestablishedvcriteria.v Thevnecessaryvingredientsv arevverifiablevdatavandvthevexistencevofvstandardsv e
stablishedv byvanv authoritativevbody.v Anv operationalvaudit,vonv thevotherv hand,v isv av reviewvofvavdepartmentv
orv otherv unitv ofvav businessv orv governmentalvorganizationvtovmeasurevtheveffectivenessv andvefficiencyvofv o
perations.v Internalvauditorsv oftenv performvoperationalvauditsv asv dovauditorsv employedvbyvthe vGovernmen
tvAccountabilityvOffice v(GAO)vofvthevfederalvgovernment.

1-12 Internalvauditorsv mustv bevindependentv ofv thevdepartmentv headsv andvotherv linevexecutivesv whosevworkvtheyvr
eview.v However,vinternalvauditorsv arevnotv independentv invthevsamevsensevasvav publicvaccountingvfirm.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller TIFFACADEMICS. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $21.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67096 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$21.99
  • (0)
  Add to cart