Auditing & Assurance Services
TEST BANK
s s
Auditing & Assurance Services: A Systematic A
s s s s s s
pproach, 11th Edition Chapters 1 - 21
s s s s s s s
,Auditing & Assurance Services
Chapters1:sAnsIntroductionstosAssurancesandsFinancialsStatementsAuditing
Chapters2:sThesFinancialsStatementsAuditingsEnvironment
Chapters3:sAuditsPlanning,sTypessofsAuditsTests,sandsMateriality
Chapters4:sRisksAssessment
Chapters5:sEvidencesandsDocumentation
Chapters6:sInternalsControlsinsasFinancialsStatementsAudit
Chapters7:sAuditingsInternalsControlsoversFinancialsReporting
Chapters8:sAuditsSampling:sAnsOverviewsandsApplicationstosTestssofsControls
Chapters9:sAuditsSampling:sAnsApplicationstosSubstantivesTestssofsAccountsBalances
Chapters10:sAuditingsthesRevenuesProcess
Chapters11:sAuditingsthesPurchasingsProcess
Chapters12:sAuditingsthesHumansResourcesManagementsProcess
Chapters13:sAuditingsthesInventorysManagementsProcess
Chapters14:sAuditingsthesFinancing/InvestingsProcess:sPrepaidsExpenses,sIntangiblesAssets,san
dsProperty,sPlant,sandsEquipment
Chapters15:sAuditingsthesFinancing/InvestingsProcess:sLong-
TermsLiabilities,sStockholders’sEquity,sandsIncomesStatementsAccounts
Chapters16:sAuditingsthesFinancing/InvestingsProcess:sCashsandsInvestments
Chapters17:sCompletingsthesAuditsEngagement
Chapters18:sReportssonsAuditedsFinancialsStatements
Chapters19:sProfessionalsConduct,sIndependence,sandsQualitysManagement
Chapters20:sLegalsLiability
Chapters21:sAssurance,sAttestation,sandsInternalsAuditingsServices
,Auditing & Assurance Services
Chapter 01 s s
An Introduction to Assurance and Financial Statement Auditing
s s s s s s s
Trues /s Falses Questions
1. Independences standards s ares requireds fors auditss ofs publics companies,s buts nots fors auditssofs
privatescompanies.
True False
2. Decisions makerss demand s reliables informations thats iss provideds bys accountants.
True False
3. Informations asymmetrys seldoms occurs.
True False
4. Conflictss ofs interestsoftensoccurs betweens absentees ownerss ands managers.
True False
5. Auditings servicess ands attestations servicess ares thes same.
True False
6. Auditingsissastypesofsattestsservice.
True False
7. Testingsallstransactionssthatsoccurredsduringsthesperiodsisscostsprohibitive.
True False
Multiples Choices Questions
, Auditing & Assurance Services
8. Whysdosauditorssgenerallysusesassamplingsapproachstosevidencesgathering?
A. Auditorss aresexperts s andsdosnotsneedstoslooksatsmuchstosknowswhethersthesfinancialssta
tementssarescorrectsorsnot.
B. Auditorss mustsbalancesthescostsofsthesauditswithsthesneedsforspr
ecision.
C. Auditorssmustslimitstheirsexposurestostheirsauditeestosmaintainsin
dependence.
D. Thesauditor'ssrelationshipswithsthesauditeesissgenerallysadversarial,ssosthesauditorswillsno
tshavesaccessstosallsofsthesfinancialsinformationsofsthescompany.
9. Whichs ofs thes followings statements s bests describess as relationships betweens samples sizes andsot
herselementssofsauditing?
A. Ifs materialitys increases,s sos wills thess
amplessize.
B. Ifs thes desireds levels ofs assurances increases,s samples sizess cans bess
maller.
C. Ifsmaterialitysdecreases,ssamplessizeswillsneedstosi
ncrease.
D. Theresissnosrelationships betweenssamplessizes ands materialitysorsthes desiredslevelsofs
assurance.
10. Whichsofsthes followingsstatementss abouts thes studysofs auditings iss NOTs true?
A. Thes studys ofs auditings cans bes valuables tos futures accountants s ands businesss decisionsma
kersswhethersorsnotstheysplanstosbecomesauditors.
B. Thes studys ofs auditings focusess ons learnings thes analytical s ands logicals skillss necessarys tosev
aluatesthesrelevancesandsreliabilitysofsinformation.
C. Thes studys ofs auditings focusess ons learnings thes rules,s techniques,s ands computationssre
quiredstosanalyzesfinancialsstatements.
D. Thes studys ofs auditings beginss withsthes understandings ofs as coherents logicals frameworksan
dstechniquessusefulsforsgatheringsandsanalyzingsevidencesaboutsothers'sassertions.
11. Thesbasicspurposesofsasfinancialsstatementsauditsissto
A. Detects
fraud.
B. Examines individual s transactions s sos thats thes auditors mays certifys ass tosth
eirsvalidity.
C. Provides assurances regardings whethers thes auditee'ss financials statementss aresfa
irlysstated.
D. Assures thes consistents applications ofs corrects accountingsp
rocedures.
TEST BANK
s s
Auditing & Assurance Services: A Systematic A
s s s s s s
pproach, 11th Edition Chapters 1 - 21
s s s s s s s
,Auditing & Assurance Services
Chapters1:sAnsIntroductionstosAssurancesandsFinancialsStatementsAuditing
Chapters2:sThesFinancialsStatementsAuditingsEnvironment
Chapters3:sAuditsPlanning,sTypessofsAuditsTests,sandsMateriality
Chapters4:sRisksAssessment
Chapters5:sEvidencesandsDocumentation
Chapters6:sInternalsControlsinsasFinancialsStatementsAudit
Chapters7:sAuditingsInternalsControlsoversFinancialsReporting
Chapters8:sAuditsSampling:sAnsOverviewsandsApplicationstosTestssofsControls
Chapters9:sAuditsSampling:sAnsApplicationstosSubstantivesTestssofsAccountsBalances
Chapters10:sAuditingsthesRevenuesProcess
Chapters11:sAuditingsthesPurchasingsProcess
Chapters12:sAuditingsthesHumansResourcesManagementsProcess
Chapters13:sAuditingsthesInventorysManagementsProcess
Chapters14:sAuditingsthesFinancing/InvestingsProcess:sPrepaidsExpenses,sIntangiblesAssets,san
dsProperty,sPlant,sandsEquipment
Chapters15:sAuditingsthesFinancing/InvestingsProcess:sLong-
TermsLiabilities,sStockholders’sEquity,sandsIncomesStatementsAccounts
Chapters16:sAuditingsthesFinancing/InvestingsProcess:sCashsandsInvestments
Chapters17:sCompletingsthesAuditsEngagement
Chapters18:sReportssonsAuditedsFinancialsStatements
Chapters19:sProfessionalsConduct,sIndependence,sandsQualitysManagement
Chapters20:sLegalsLiability
Chapters21:sAssurance,sAttestation,sandsInternalsAuditingsServices
,Auditing & Assurance Services
Chapter 01 s s
An Introduction to Assurance and Financial Statement Auditing
s s s s s s s
Trues /s Falses Questions
1. Independences standards s ares requireds fors auditss ofs publics companies,s buts nots fors auditssofs
privatescompanies.
True False
2. Decisions makerss demand s reliables informations thats iss provideds bys accountants.
True False
3. Informations asymmetrys seldoms occurs.
True False
4. Conflictss ofs interestsoftensoccurs betweens absentees ownerss ands managers.
True False
5. Auditings servicess ands attestations servicess ares thes same.
True False
6. Auditingsissastypesofsattestsservice.
True False
7. Testingsallstransactionssthatsoccurredsduringsthesperiodsisscostsprohibitive.
True False
Multiples Choices Questions
, Auditing & Assurance Services
8. Whysdosauditorssgenerallysusesassamplingsapproachstosevidencesgathering?
A. Auditorss aresexperts s andsdosnotsneedstoslooksatsmuchstosknowswhethersthesfinancialssta
tementssarescorrectsorsnot.
B. Auditorss mustsbalancesthescostsofsthesauditswithsthesneedsforspr
ecision.
C. Auditorssmustslimitstheirsexposurestostheirsauditeestosmaintainsin
dependence.
D. Thesauditor'ssrelationshipswithsthesauditeesissgenerallysadversarial,ssosthesauditorswillsno
tshavesaccessstosallsofsthesfinancialsinformationsofsthescompany.
9. Whichs ofs thes followings statements s bests describess as relationships betweens samples sizes andsot
herselementssofsauditing?
A. Ifs materialitys increases,s sos wills thess
amplessize.
B. Ifs thes desireds levels ofs assurances increases,s samples sizess cans bess
maller.
C. Ifsmaterialitysdecreases,ssamplessizeswillsneedstosi
ncrease.
D. Theresissnosrelationships betweenssamplessizes ands materialitysorsthes desiredslevelsofs
assurance.
10. Whichsofsthes followingsstatementss abouts thes studysofs auditings iss NOTs true?
A. Thes studys ofs auditings cans bes valuables tos futures accountants s ands businesss decisionsma
kersswhethersorsnotstheysplanstosbecomesauditors.
B. Thes studys ofs auditings focusess ons learnings thes analytical s ands logicals skillss necessarys tosev
aluatesthesrelevancesandsreliabilitysofsinformation.
C. Thes studys ofs auditings focusess ons learnings thes rules,s techniques,s ands computationssre
quiredstosanalyzesfinancialsstatements.
D. Thes studys ofs auditings beginss withsthes understandings ofs as coherents logicals frameworksan
dstechniquessusefulsforsgatheringsandsanalyzingsevidencesaboutsothers'sassertions.
11. Thesbasicspurposesofsasfinancialsstatementsauditsissto
A. Detects
fraud.
B. Examines individual s transactions s sos thats thes auditors mays certifys ass tosth
eirsvalidity.
C. Provides assurances regardings whethers thes auditee'ss financials statementss aresfa
irlysstated.
D. Assures thes consistents applications ofs corrects accountingsp
rocedures.
