TEST BANK For Auditing & Assurance Services: A Sy
m m m m m m m m
stematic Approach, 12th Edition
m m m m
Chapters 1 - 21 Complete
m m m m
,
,Chapterm1:mAnmIntroductionmtomAssurancemandmFinancialmStatementmAuditing
Chapterm2:mThemFinancialmStatementmAuditingmEnvironment
Chapterm3:mAuditmPlanning,mTypesmofmAuditmTests,mandmMateriality
Chapterm4:mRiskmAssessment
Chapterm5:mEvidencemandmDocumentation
Chapterm6:mInternalmControlminmamFinancialmStatementmAudit
Chapterm7:mAuditingmInternalmControlmovermFinancialmReporting
Chapterm8:mAuditmSampling:mAnmOverviewmandmApplicationmtomTestsmofmControls
Chapterm9:mAuditmSampling:mAnmApplicationmtomSubstantivemTestsmofmAccountmBalances
Chapterm10:mAuditingmthemRevenuemProcess
Chapterm11:mAuditingmthemPurchasingmProcess
Chapterm12:mAuditingmthemHumanmResourcemManagementmProcess
Chapterm13:mAuditingmthemInventorymManagementmProcess
Chapterm14:mAuditingmthemFinancing/InvestingmProcess:mPrepaidmExpenses,mIntangiblemAssets,mandm
Property,mPlant,mandmEquipment
Chapterm15:mAuditingmthemFinancing/InvestingmProcess:mLong-
TermmLiabilities,mStockholders’mEquity,mandmIncomemStatementmAccounts
Chapterm16:mAuditingmthemFinancing/InvestingmProcess:mCashmandmInvestments
Chapterm17:mCompletingmthemAuditmEngagement
Chapterm18:mReportsmonmAuditedmFinancialmStatements
Chapterm19:mProfessionalmConduct,mIndependence,mandmQualitymManagement
Chapterm20:mLegalmLiability
Chapterm21:mAssurance,mAttestation,mandmInternalmAuditingmServices
, Auditingm&mAssurancemServices:mAmSystematicmApproach,m12em(Messier)mChapt
erm1m AnmIntroductionmtomAssurancemandmFinancialmStatementmAuditing
1) Auditingmfocusesmonmrules,mtechniques,mandmcomputationsmrequiredmtompreparemandman
alyzemfinancialminformation.
ANSWER:m FALSEmDifficult
y:m1mEasy
Topic:m ThemImportancemformStudyingmAuditing
LearningmObjective:m 01-
01mUnderstandmwhymstudyingmauditingmcanmbemvaluablemtomyoumwhethermormnotmyoumplanmtombe
comemanmauditor,mandmwhymitmismdifferentmfrommstudyingmaccounting.
Bloom's:m RemembermAAC
SB:m Communication
AICPA:m BBmLegal;mFNmDecisionmMaking
2) Decisionmmakersmdemandmreliableminformationmthatmismprovidedmbymaccountants.
ANSWER:m TRUEmDifficulty
:m1mEasy
Topic:m ThemDemandmformAuditingmandmAssurance
LearningmObjective:m 01-
02mUnderstandmthemdemandmformauditingmandmbemablemtomexplainmthemdesiredmcharacteristicsmo
fmauditorsmandmauditmservicesmthroughmanmanalogymtomamhouseminspectormandmamhouseminspectio
nmservice.
Bloom's:m UnderstandmAA
CSB:m Communication
AICPA:m FNmDecisionmMaking;mBBmIndustry
3) Informationmasymmetrymseldommoccurs.
ANSWER:m FALSEmDifficult
y:m2mMedium
Topic:m ThemDemandmformAuditingmandmAssurance
LearningmObjective:m 01-
02mUnderstandmthemdemandmformauditingmandmbemablemtomexplainmthemdesiredmcharacteristicsmo
fmauditorsmandmauditmservicesmthroughmanmanalogymtomamhouseminspectormandmamhouseminspectio
nmservice.
Bloom's:m Apply
AACSB:m Communication
AICPA:m BBmIndustry;mFNmReporting
m m m m m m m m
stematic Approach, 12th Edition
m m m m
Chapters 1 - 21 Complete
m m m m
,
,Chapterm1:mAnmIntroductionmtomAssurancemandmFinancialmStatementmAuditing
Chapterm2:mThemFinancialmStatementmAuditingmEnvironment
Chapterm3:mAuditmPlanning,mTypesmofmAuditmTests,mandmMateriality
Chapterm4:mRiskmAssessment
Chapterm5:mEvidencemandmDocumentation
Chapterm6:mInternalmControlminmamFinancialmStatementmAudit
Chapterm7:mAuditingmInternalmControlmovermFinancialmReporting
Chapterm8:mAuditmSampling:mAnmOverviewmandmApplicationmtomTestsmofmControls
Chapterm9:mAuditmSampling:mAnmApplicationmtomSubstantivemTestsmofmAccountmBalances
Chapterm10:mAuditingmthemRevenuemProcess
Chapterm11:mAuditingmthemPurchasingmProcess
Chapterm12:mAuditingmthemHumanmResourcemManagementmProcess
Chapterm13:mAuditingmthemInventorymManagementmProcess
Chapterm14:mAuditingmthemFinancing/InvestingmProcess:mPrepaidmExpenses,mIntangiblemAssets,mandm
Property,mPlant,mandmEquipment
Chapterm15:mAuditingmthemFinancing/InvestingmProcess:mLong-
TermmLiabilities,mStockholders’mEquity,mandmIncomemStatementmAccounts
Chapterm16:mAuditingmthemFinancing/InvestingmProcess:mCashmandmInvestments
Chapterm17:mCompletingmthemAuditmEngagement
Chapterm18:mReportsmonmAuditedmFinancialmStatements
Chapterm19:mProfessionalmConduct,mIndependence,mandmQualitymManagement
Chapterm20:mLegalmLiability
Chapterm21:mAssurance,mAttestation,mandmInternalmAuditingmServices
, Auditingm&mAssurancemServices:mAmSystematicmApproach,m12em(Messier)mChapt
erm1m AnmIntroductionmtomAssurancemandmFinancialmStatementmAuditing
1) Auditingmfocusesmonmrules,mtechniques,mandmcomputationsmrequiredmtompreparemandman
alyzemfinancialminformation.
ANSWER:m FALSEmDifficult
y:m1mEasy
Topic:m ThemImportancemformStudyingmAuditing
LearningmObjective:m 01-
01mUnderstandmwhymstudyingmauditingmcanmbemvaluablemtomyoumwhethermormnotmyoumplanmtombe
comemanmauditor,mandmwhymitmismdifferentmfrommstudyingmaccounting.
Bloom's:m RemembermAAC
SB:m Communication
AICPA:m BBmLegal;mFNmDecisionmMaking
2) Decisionmmakersmdemandmreliableminformationmthatmismprovidedmbymaccountants.
ANSWER:m TRUEmDifficulty
:m1mEasy
Topic:m ThemDemandmformAuditingmandmAssurance
LearningmObjective:m 01-
02mUnderstandmthemdemandmformauditingmandmbemablemtomexplainmthemdesiredmcharacteristicsmo
fmauditorsmandmauditmservicesmthroughmanmanalogymtomamhouseminspectormandmamhouseminspectio
nmservice.
Bloom's:m UnderstandmAA
CSB:m Communication
AICPA:m FNmDecisionmMaking;mBBmIndustry
3) Informationmasymmetrymseldommoccurs.
ANSWER:m FALSEmDifficult
y:m2mMedium
Topic:m ThemDemandmformAuditingmandmAssurance
LearningmObjective:m 01-
02mUnderstandmthemdemandmformauditingmandmbemablemtomexplainmthemdesiredmcharacteristicsmo
fmauditorsmandmauditmservicesmthroughmanmanalogymtomamhouseminspectormandmamhouseminspectio
nmservice.
Bloom's:m Apply
AACSB:m Communication
AICPA:m BBmIndustry;mFNmReporting
