Mathematics ExamsWhile business, law, and mathematics exams differ significantly in content and structure, there are some overlapping features in the way they test students:Critical Thinking: Each
field requires students to think critically—whether it's analyzing a business case, interpreting legal issues, or solving a complex mathematical problem.Application of Knowledge: All three fields require
students to apply knowledge to practical scenarios. Business and law exams often feature case studies or problem-based questions, while mathematics exams focus on problem-solving
Auditing & Assurance Services: A Systematic Approach, 11e (Messier)
Chapter 1 An Introduction to Assurance and Financial Statement Auditing
1) Auditing focuses on rules, techniques, and computations required to prepare and analyze
financial information.
Answer: FALSE
Difficulty: 1 Easy
Topic: The Importance for Studying Auditing
Learning Objective: 01-01 Understand why studying auditing can be valuable to you whether or
not you plan to become an auditor, and why it is different from studying accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Legal; FN Decision Making
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal
frameworks, and ethical issues. It prepares students for legal practice, with
2) Decision makers demand reliable information that is provided by accountants.
Answer: TRUE
Difficulty: 1 Easy
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
desired characteristics of auditors and audit services through an analogy to a house inspector and
a house inspection service.
Bloom's: Understand
AACSB: Communication
AICPA: FN Decision Making; BB Industry
3) Information asymmetry seldom occurs.
Answer: FALSE
Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
desired characteristics of auditors and audit services through an analogy to a house inspector and
a house inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
1
, Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
Conflicts of interest often occur between absentee owners and managers.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
desired characteristics of auditors and audit services through an analogy to a house inspector and
a house inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
4) Auditing services and attestation services are the same.
Mathematics ExamsWhile business, law, and mathematics exams differ significantly in content and structure, there are some overlapping features in the way they test students:Critical Thinking: Each field
requires students to think critically—whether it's analyzing a business case, interpreting legal issues, or solving a complex mathematical problem.Application of Knowledge: All three fields require students
to apply knowledge to practical scenarios. Business and law exams often feature case studies or problem-based questions, while mathematics exams focus on problem-solving
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks,
and ethical issues. It prepares students for legal practice, with
Answer: FALSE
Difficulty: 1 Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and
assurance services.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
5) Auditing is a type of attest service.
Answer: TRUE
Difficulty: 1 Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and
assurance services.; 01-04 Know the basic definition of a financial statement audit.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
6) Testing all transactions that occurred during the period is cost prohibitive.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Audit Process
Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
only a sample of transactions that occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FN Decision Making; BB Critical Thinking
2
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.
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.
businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining
Mathematics ExamsWhile business, law, and mathematics exams differ significantly in content and structure, there are some overlapping features in the way they test students:Critical
Thinking: Each field requires students to think critically—whether it's analyzing a business case, interpreting legal issues, or solving a complex mathematical problem.Application of
Knowledge: All three fields require students to apply knowledge to practical scenarios. Business and law exams often feature case studies or problem-based questions, while
mathematics exams focus on problem-solving principles, case law, legal frameworks, and ethical issues. It prepares students for legal practice, with
Answer: B
Difficulty: 1 Easy
Topic: The Audit Process
Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
only a sample of transactions that occurred.
Bloom's: Understand
AACSB: Communication
AICPA: FN Decision Making; BB Industry
7) 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.
D) There is no relationship between sample size and materiality or the desired level of assurance.
Answer: C
Difficulty: 2 Medium
Topic: The Audit Process
Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
only a sample of transactions that occurred.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Risk Analysis
Mathematics ExamsWhile business, law, and mathematics exams differ significantly in content and structure, there are some overlapping features in the way they test students:Critical
Thinking: Each field requires students to think critically—whether it's analyzing a business case, interpreting legal issues, or solving a complex mathematical problem.Application of Knowledge: All three
fields require students to apply knowledge to practical scenarios. Business and law exams often feature case studies or problem-based questions, while mathematics exams focus on problem-solving
3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
field requires students to think critically—whether it's analyzing a business case, interpreting legal issues, or solving a complex mathematical problem.Application of Knowledge: All three fields require
students to apply knowledge to practical scenarios. Business and law exams often feature case studies or problem-based questions, while mathematics exams focus on problem-solving
Auditing & Assurance Services: A Systematic Approach, 11e (Messier)
Chapter 1 An Introduction to Assurance and Financial Statement Auditing
1) Auditing focuses on rules, techniques, and computations required to prepare and analyze
financial information.
Answer: FALSE
Difficulty: 1 Easy
Topic: The Importance for Studying Auditing
Learning Objective: 01-01 Understand why studying auditing can be valuable to you whether or
not you plan to become an auditor, and why it is different from studying accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Legal; FN Decision Making
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal
frameworks, and ethical issues. It prepares students for legal practice, with
2) Decision makers demand reliable information that is provided by accountants.
Answer: TRUE
Difficulty: 1 Easy
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
desired characteristics of auditors and audit services through an analogy to a house inspector and
a house inspection service.
Bloom's: Understand
AACSB: Communication
AICPA: FN Decision Making; BB Industry
3) Information asymmetry seldom occurs.
Answer: FALSE
Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
desired characteristics of auditors and audit services through an analogy to a house inspector and
a house inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
1
, Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
Conflicts of interest often occur between absentee owners and managers.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
desired characteristics of auditors and audit services through an analogy to a house inspector and
a house inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
4) Auditing services and attestation services are the same.
Mathematics ExamsWhile business, law, and mathematics exams differ significantly in content and structure, there are some overlapping features in the way they test students:Critical Thinking: Each field
requires students to think critically—whether it's analyzing a business case, interpreting legal issues, or solving a complex mathematical problem.Application of Knowledge: All three fields require students
to apply knowledge to practical scenarios. Business and law exams often feature case studies or problem-based questions, while mathematics exams focus on problem-solving
skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks,
and ethical issues. It prepares students for legal practice, with
Answer: FALSE
Difficulty: 1 Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and
assurance services.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
5) Auditing is a type of attest service.
Answer: TRUE
Difficulty: 1 Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and
assurance services.; 01-04 Know the basic definition of a financial statement audit.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
6) Testing all transactions that occurred during the period is cost prohibitive.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Audit Process
Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
only a sample of transactions that occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FN Decision Making; BB Critical Thinking
2
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.
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.
businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining
Mathematics ExamsWhile business, law, and mathematics exams differ significantly in content and structure, there are some overlapping features in the way they test students:Critical
Thinking: Each field requires students to think critically—whether it's analyzing a business case, interpreting legal issues, or solving a complex mathematical problem.Application of
Knowledge: All three fields require students to apply knowledge to practical scenarios. Business and law exams often feature case studies or problem-based questions, while
mathematics exams focus on problem-solving principles, case law, legal frameworks, and ethical issues. It prepares students for legal practice, with
Answer: B
Difficulty: 1 Easy
Topic: The Audit Process
Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
only a sample of transactions that occurred.
Bloom's: Understand
AACSB: Communication
AICPA: FN Decision Making; BB Industry
7) 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.
D) There is no relationship between sample size and materiality or the desired level of assurance.
Answer: C
Difficulty: 2 Medium
Topic: The Audit Process
Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
only a sample of transactions that occurred.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Risk Analysis
Mathematics ExamsWhile business, law, and mathematics exams differ significantly in content and structure, there are some overlapping features in the way they test students:Critical
Thinking: Each field requires students to think critically—whether it's analyzing a business case, interpreting legal issues, or solving a complex mathematical problem.Application of Knowledge: All three
fields require students to apply knowledge to practical scenarios. Business and law exams often feature case studies or problem-based questions, while mathematics exams focus on problem-solving
3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
