Edrftgyihu jiuh
Auditing &
ST
Assurance Services,
UV
4th Canadian Edition
IA
TEST BANK
_A
William F. Messier Jr.
PP
Steven M. Glover
Douglas F. Prawitt
Naomi Paisley
Gregory Springate
RO
────────────────────────────────────────────────────
Comprehensive Test Bank for Instructors
and Students
VE
||| ||| || ||| || | || ||| | || ||| |
D?
9781264876204
© William F. Messier Jr., Steven M. Glover, Douglas F. Prawitt, Naomi Paisley, & Gregory
Springate. All rights reserved. Reproduction or distribution without permission is prohibited.
© MEDCONNOISSEUR
, Edrftgyihu jiuh
Auditing & Assurance Services — Test Bank
William F. Messier Jr., Steven M. Glover, Douglas F. Prawitt, Naomi Paisley and Gregory
Springate
ISBN: 9781264876204
ST
Chapter 1: An Introduction to Assurance and Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
UV
Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidence and Documentation
Chapter 6: Internal Control in a Financial Statement Audit
Chapter 7: Auditing Internal Control Over Financial Reporting
IA
Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls
Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Balances
Chapter 10: Auditing the Revenue Process
Chapter 11: Auditing the Purchasing Process
_A
Chapter 12: Auditing the Human Resource Management Process
Chapter 13: Auditing the Inventory Management Process
Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets,
Property, Plant, and Equipment, and Goodwill
PP
Chapter 15: Auditing the Financing/Investing Process: Long-Term Liabilities, Shareholders'
Equity, and Income Statement Accounts
Chapter 16: Auditing the Financing/Investing Process: Cash and Investments
Chapter 17: Completing the Audit Engagement
RO
Chapter 18: Reports on Audited Financial Statements
Chapter 19: Professional Conduct, Independence, and Quality Control
Chapter 20: Legal Liability
Chapter 21: Assurance, Attestation, and Internal Auditing Services
VE
D?
© MEDCONNOISSEUR
, Test Bank Auditing & Assurance Services 4th Canadian Edition William Messier
Chapter 01 4ce - Messier
1) Auditing focuses on rules, techniques, and computations required to prepare and analyze
financial information.
⊚ true
⊚ false
ST
2) Decision makers demand reliable information that is provided by accountants.
⊚ true
UV
⊚ false
3) Information asymmetry seldom occurs.
⊚ true
IA
⊚ false
_A
4) Conflicts of interest often occur between absentee owners and managers.
⊚ true
⊚ false
PP
5) Auditing services and attest services are the same.
⊚ true
⊚ false
RO
6) Auditing is a type of attest service.
⊚ true
⊚ false
VE
7) Testing all transactions that occurred during the period is cost prohibitive.
⊚ true
⊚ false
D?
1
, 8) Why do auditors generally use a sampling approach to evidence gathering?
A) Auditors are experts and do not need to look at much to know whether the financial
statements are correct or not.
B) Auditors must balance the cost of the audit with the need for precision.
C) Auditors must limit their exposure to their auditee to maintain independence.
ST
D) The auditor's relationship with the auditee is generally adversarial, so the auditor will
not have access to all of the financial information of the company.
UV
9) Which of the following statements best describes a relationship between sample size and
other elements of auditing?
A) If materiality increases, so will the sample size.
B) If the desired level of assurance increases, sample sizes can be smaller.
C) If materiality decreases, sample size will need to increase.
IA
D) There is no relationship between sample size and materiality or the desired level of
assurance.
_A
10) Which of the following statements about the study of auditing is NOT true?
A) The study of auditing can be valuable to future accountants and business decision
makers whether or not they plan to become auditors.
PP
B) The study of auditing focuses on learning the analytical and logical skills necessary to
evaluate the relevance and reliability of information.
C) The study of auditing focuses on learning the rules, techniques, and computations
required to analyze financial statements.
D) The study of auditing begins with the understanding of a coherent logical framework
RO
and techniques useful for gathering and analyzing evidence about others' assertions.
11) The basic definition of auditing states it is a process to:
A) detect fraud.
VE
B) examine individual transactions so that the auditor may certify as to their validity.
C) objectively obtain and evaluate evidence regarding assertions.
D) assure the consistent application of correct accounting procedures.
D?
2
Auditing &
ST
Assurance Services,
UV
4th Canadian Edition
IA
TEST BANK
_A
William F. Messier Jr.
PP
Steven M. Glover
Douglas F. Prawitt
Naomi Paisley
Gregory Springate
RO
────────────────────────────────────────────────────
Comprehensive Test Bank for Instructors
and Students
VE
||| ||| || ||| || | || ||| | || ||| |
D?
9781264876204
© William F. Messier Jr., Steven M. Glover, Douglas F. Prawitt, Naomi Paisley, & Gregory
Springate. All rights reserved. Reproduction or distribution without permission is prohibited.
© MEDCONNOISSEUR
, Edrftgyihu jiuh
Auditing & Assurance Services — Test Bank
William F. Messier Jr., Steven M. Glover, Douglas F. Prawitt, Naomi Paisley and Gregory
Springate
ISBN: 9781264876204
ST
Chapter 1: An Introduction to Assurance and Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
UV
Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidence and Documentation
Chapter 6: Internal Control in a Financial Statement Audit
Chapter 7: Auditing Internal Control Over Financial Reporting
IA
Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls
Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Balances
Chapter 10: Auditing the Revenue Process
Chapter 11: Auditing the Purchasing Process
_A
Chapter 12: Auditing the Human Resource Management Process
Chapter 13: Auditing the Inventory Management Process
Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets,
Property, Plant, and Equipment, and Goodwill
PP
Chapter 15: Auditing the Financing/Investing Process: Long-Term Liabilities, Shareholders'
Equity, and Income Statement Accounts
Chapter 16: Auditing the Financing/Investing Process: Cash and Investments
Chapter 17: Completing the Audit Engagement
RO
Chapter 18: Reports on Audited Financial Statements
Chapter 19: Professional Conduct, Independence, and Quality Control
Chapter 20: Legal Liability
Chapter 21: Assurance, Attestation, and Internal Auditing Services
VE
D?
© MEDCONNOISSEUR
, Test Bank Auditing & Assurance Services 4th Canadian Edition William Messier
Chapter 01 4ce - Messier
1) Auditing focuses on rules, techniques, and computations required to prepare and analyze
financial information.
⊚ true
⊚ false
ST
2) Decision makers demand reliable information that is provided by accountants.
⊚ true
UV
⊚ false
3) Information asymmetry seldom occurs.
⊚ true
IA
⊚ false
_A
4) Conflicts of interest often occur between absentee owners and managers.
⊚ true
⊚ false
PP
5) Auditing services and attest services are the same.
⊚ true
⊚ false
RO
6) Auditing is a type of attest service.
⊚ true
⊚ false
VE
7) Testing all transactions that occurred during the period is cost prohibitive.
⊚ true
⊚ false
D?
1
, 8) Why do auditors generally use a sampling approach to evidence gathering?
A) Auditors are experts and do not need to look at much to know whether the financial
statements are correct or not.
B) Auditors must balance the cost of the audit with the need for precision.
C) Auditors must limit their exposure to their auditee to maintain independence.
ST
D) The auditor's relationship with the auditee is generally adversarial, so the auditor will
not have access to all of the financial information of the company.
UV
9) Which of the following statements best describes a relationship between sample size and
other elements of auditing?
A) If materiality increases, so will the sample size.
B) If the desired level of assurance increases, sample sizes can be smaller.
C) If materiality decreases, sample size will need to increase.
IA
D) There is no relationship between sample size and materiality or the desired level of
assurance.
_A
10) Which of the following statements about the study of auditing is NOT true?
A) The study of auditing can be valuable to future accountants and business decision
makers whether or not they plan to become auditors.
PP
B) The study of auditing focuses on learning the analytical and logical skills necessary to
evaluate the relevance and reliability of information.
C) The study of auditing focuses on learning the rules, techniques, and computations
required to analyze financial statements.
D) The study of auditing begins with the understanding of a coherent logical framework
RO
and techniques useful for gathering and analyzing evidence about others' assertions.
11) The basic definition of auditing states it is a process to:
A) detect fraud.
VE
B) examine individual transactions so that the auditor may certify as to their validity.
C) objectively obtain and evaluate evidence regarding assertions.
D) assure the consistent application of correct accounting procedures.
D?
2
