TEST BANK For Auditing & Assurance Services: A
g g g g g g g
g Systematic Approach, 12th Edition
g g g g
Chapters 1 - 21 Complete
g g g g
,Chapter g1: gAn gIntroduction gto gAssurance gand gFinancial gStatement gAuditing
Chapter g2: gThe gFinancial gStatement gAuditing gEnvironment
Chapter g3: gAudit gPlanning, gTypes gof gAudit gTests, gand gMateriality
Chapter g4: gRisk gAssessment
Chapter g5: gEvidence gand gDocumentation
Chapter g6: gInternal gControl gin ga gFinancial gStatement gAudit
Chapter g7: gAuditing gInternal gControl gover gFinancial gReporting
Chapter g8: gAudit gSampling: gAn gOverview gand gApplication gto gTests gof gControls
Chapter g9: gAudit gSampling: gAn gApplication gto gSubstantive gTests gof gAccount gBalances
Chapter g10: gAuditing gthe gRevenue gProcess
Chapter g11: gAuditing gthe gPurchasing gProcess
Chapter g12: gAuditing gthe gHuman gResource gManagement gProcess
Chapter g13: gAuditing gthe gInventory gManagement gProcess
Chapter g14: gAuditing gthe gFinancing/Investing gProcess: gPrepaid gExpenses, gIntangible gAssets, gand
gProperty, gPlant, gand gEquipment
Chapter g15: gAuditing gthe gFinancing/Investing gProcess: gLong-Term gLiabilities, gStockholders’
gEquity, gand gIncome gStatement gAccounts
Chapter g16: gAuditing gthe gFinancing/Investing gProcess: gCash gand gInvestments
Chapter g17: gCompleting gthe gAudit gEngagement
Chapter g18: gReports gon gAudited gFinancial gStatements
Chapter g19: gProfessional gConduct, gIndependence, gand gQuality gManagement
Chapter g20: gLegal gLiability
,Chapter g21: gAssurance, gAttestation, gand gInternal gAuditing gServices
Auditing g& gAssurance gServices: gA gSystematic gApproach, g12e g(Messier)
gChapter g1 g An gIntroduction gto gAssurance gand gFinancial gStatement gAuditing
1) Auditing gfocuses gon grules, gtechniques, gand gcomputations grequired gto gprepare gand
ganalyze gfinancial ginformation.
ANSWER: g FALSE
gDifficulty: g1 gEasy
Topic: g The gImportance gfor gStudying gAuditing
Learning gObjective: g 01-01 gUnderstand gwhy gstudying gauditing gcan gbe gvaluable gto gyou
gwhether gor gnot gyou gplan gto gbecome gan gauditor, gand gwhy git gis gdifferent gfrom gstudying
gaccounting.
Bloom's: g Remember
gAACSB: g Communication
AICPA: g BB gLegal; gFN gDecision gMaking
2) Decision gmakers gdemand greliable ginformation gthat gis gprovided gby gaccountants.
ANSWER: g TRUE
gDifficulty: g1 gEasy
Topic: g The gDemand gfor gAuditing gand gAssurance
Learning gObjective: g 01-02 gUnderstand gthe gdemand gfor gauditing gand gbe gable gto gexplain gthe
gdesired gcharacteristics gof gauditors gand gaudit gservices gthrough gan ganalogy gto ga ghouse
ginspector gand ga ghouse ginspection gservice.
Bloom's: g Understand
gAACSB: g Communication
AICPA: g FN gDecision gMaking; gBB gIndustry
3) Information gasymmetry gseldom goccurs.
ANSWER: g FALSE
gDifficulty: g2 gMedium
Topic: g The gDemand gfor gAuditing gand gAssurance
Learning gObjective: g 01-02 gUnderstand gthe gdemand gfor gauditing gand gbe gable gto gexplain gthe
gdesired gcharacteristics gof gauditors gand gaudit gservices gthrough gan ganalogy gto ga ghouse
ginspector gand ga ghouse ginspection gservice.
Bloom's: g Apply
AACSB: g Communication
AICPA: g BB gIndustry; gFN gReporting
, 4) Conflicts gof ginterest goften goccur gbetween gabsentee gowners gand gmanagers.
ANSWER: g TRUE
gDifficulty: g2 gMedium
Topic: g The gDemand gfor gAuditing gand gAssurance
Learning gObjective: g 01-02 gUnderstand gthe gdemand gfor gauditing gand gbe gable gto gexplain gthe
gdesired gcharacteristics gof gauditors gand gaudit gservices gthrough gan ganalogy gto ga ghouse
ginspector gand ga ghouse ginspection gservice.
Bloom's: g Apply
AACSB: g Communication
AICPA: g BB gIndustry; gFN gReporting
5) Auditing gservices gand gattestation gservices gare gthe gsame.
ANSWER: g FALSE
gDifficulty: g1 gEasy
Topic: g Auditing, gAttest, gand gAssurance gServices gDefined
Learning gObjective: g 01-03 gUnderstand gthe grelationships gamong gauditing, gattestation, gand
gassurance gservices.
Bloom's: g Understand
gAACSB: g Communication
AICPA: g BB gIndustry; gFN gReporting
6) Auditing gis ga gtype gof gattest gservice.
ANSWER: g TRUE
gDifficulty: g1 gEasy
Topic: g Auditing, gAttest, gand gAssurance gServices gDefined
Learning gObjective: g 01-03 gUnderstand gthe grelationships gamong gauditing, gattestation, gand
gassurance gservices.; g01-04 gKnow gthe gbasic gdefinition gof ga gfinancial gstatement gaudit.
Bloom's: g Understand
gAACSB: g Communication
AICPA: g BB gIndustry; gFN gReporting
7) Testing gall gtransactions gthat goccurred gduring gthe gperiod gis gcost gprohibitive.
ANSWER: g TRUE
gDifficulty: g2 gMedium
gTopic: g The gAudit
gProcess
Learning gObjective: g 01-06 gBe gable gto gexplain gwhy gon gmost gaudit gengagements gan gauditor
gtests gonly ga gsample gof gtransactions gthat goccurred.
Bloom's: g Apply
AACSB: g Communication
g g g g g g g
g Systematic Approach, 12th Edition
g g g g
Chapters 1 - 21 Complete
g g g g
,Chapter g1: gAn gIntroduction gto gAssurance gand gFinancial gStatement gAuditing
Chapter g2: gThe gFinancial gStatement gAuditing gEnvironment
Chapter g3: gAudit gPlanning, gTypes gof gAudit gTests, gand gMateriality
Chapter g4: gRisk gAssessment
Chapter g5: gEvidence gand gDocumentation
Chapter g6: gInternal gControl gin ga gFinancial gStatement gAudit
Chapter g7: gAuditing gInternal gControl gover gFinancial gReporting
Chapter g8: gAudit gSampling: gAn gOverview gand gApplication gto gTests gof gControls
Chapter g9: gAudit gSampling: gAn gApplication gto gSubstantive gTests gof gAccount gBalances
Chapter g10: gAuditing gthe gRevenue gProcess
Chapter g11: gAuditing gthe gPurchasing gProcess
Chapter g12: gAuditing gthe gHuman gResource gManagement gProcess
Chapter g13: gAuditing gthe gInventory gManagement gProcess
Chapter g14: gAuditing gthe gFinancing/Investing gProcess: gPrepaid gExpenses, gIntangible gAssets, gand
gProperty, gPlant, gand gEquipment
Chapter g15: gAuditing gthe gFinancing/Investing gProcess: gLong-Term gLiabilities, gStockholders’
gEquity, gand gIncome gStatement gAccounts
Chapter g16: gAuditing gthe gFinancing/Investing gProcess: gCash gand gInvestments
Chapter g17: gCompleting gthe gAudit gEngagement
Chapter g18: gReports gon gAudited gFinancial gStatements
Chapter g19: gProfessional gConduct, gIndependence, gand gQuality gManagement
Chapter g20: gLegal gLiability
,Chapter g21: gAssurance, gAttestation, gand gInternal gAuditing gServices
Auditing g& gAssurance gServices: gA gSystematic gApproach, g12e g(Messier)
gChapter g1 g An gIntroduction gto gAssurance gand gFinancial gStatement gAuditing
1) Auditing gfocuses gon grules, gtechniques, gand gcomputations grequired gto gprepare gand
ganalyze gfinancial ginformation.
ANSWER: g FALSE
gDifficulty: g1 gEasy
Topic: g The gImportance gfor gStudying gAuditing
Learning gObjective: g 01-01 gUnderstand gwhy gstudying gauditing gcan gbe gvaluable gto gyou
gwhether gor gnot gyou gplan gto gbecome gan gauditor, gand gwhy git gis gdifferent gfrom gstudying
gaccounting.
Bloom's: g Remember
gAACSB: g Communication
AICPA: g BB gLegal; gFN gDecision gMaking
2) Decision gmakers gdemand greliable ginformation gthat gis gprovided gby gaccountants.
ANSWER: g TRUE
gDifficulty: g1 gEasy
Topic: g The gDemand gfor gAuditing gand gAssurance
Learning gObjective: g 01-02 gUnderstand gthe gdemand gfor gauditing gand gbe gable gto gexplain gthe
gdesired gcharacteristics gof gauditors gand gaudit gservices gthrough gan ganalogy gto ga ghouse
ginspector gand ga ghouse ginspection gservice.
Bloom's: g Understand
gAACSB: g Communication
AICPA: g FN gDecision gMaking; gBB gIndustry
3) Information gasymmetry gseldom goccurs.
ANSWER: g FALSE
gDifficulty: g2 gMedium
Topic: g The gDemand gfor gAuditing gand gAssurance
Learning gObjective: g 01-02 gUnderstand gthe gdemand gfor gauditing gand gbe gable gto gexplain gthe
gdesired gcharacteristics gof gauditors gand gaudit gservices gthrough gan ganalogy gto ga ghouse
ginspector gand ga ghouse ginspection gservice.
Bloom's: g Apply
AACSB: g Communication
AICPA: g BB gIndustry; gFN gReporting
, 4) Conflicts gof ginterest goften goccur gbetween gabsentee gowners gand gmanagers.
ANSWER: g TRUE
gDifficulty: g2 gMedium
Topic: g The gDemand gfor gAuditing gand gAssurance
Learning gObjective: g 01-02 gUnderstand gthe gdemand gfor gauditing gand gbe gable gto gexplain gthe
gdesired gcharacteristics gof gauditors gand gaudit gservices gthrough gan ganalogy gto ga ghouse
ginspector gand ga ghouse ginspection gservice.
Bloom's: g Apply
AACSB: g Communication
AICPA: g BB gIndustry; gFN gReporting
5) Auditing gservices gand gattestation gservices gare gthe gsame.
ANSWER: g FALSE
gDifficulty: g1 gEasy
Topic: g Auditing, gAttest, gand gAssurance gServices gDefined
Learning gObjective: g 01-03 gUnderstand gthe grelationships gamong gauditing, gattestation, gand
gassurance gservices.
Bloom's: g Understand
gAACSB: g Communication
AICPA: g BB gIndustry; gFN gReporting
6) Auditing gis ga gtype gof gattest gservice.
ANSWER: g TRUE
gDifficulty: g1 gEasy
Topic: g Auditing, gAttest, gand gAssurance gServices gDefined
Learning gObjective: g 01-03 gUnderstand gthe grelationships gamong gauditing, gattestation, gand
gassurance gservices.; g01-04 gKnow gthe gbasic gdefinition gof ga gfinancial gstatement gaudit.
Bloom's: g Understand
gAACSB: g Communication
AICPA: g BB gIndustry; gFN gReporting
7) Testing gall gtransactions gthat goccurred gduring gthe gperiod gis gcost gprohibitive.
ANSWER: g TRUE
gDifficulty: g2 gMedium
gTopic: g The gAudit
gProcess
Learning gObjective: g 01-06 gBe gable gto gexplain gwhy gon gmost gaudit gengagements gan gauditor
gtests gonly ga gsample gof gtransactions gthat goccurred.
Bloom's: g Apply
AACSB: g Communication
