TEST BANK for Auditing A Practical Approach with Data Analytics 2nd Edition by Laura Davis Wiley, Raymond N. Johnson and Robyn Moroney ISBN-. All Chapters 1-16 (Complete Download). 1453 Pages

TEST BANK Auditing: A Practical Approach with Data Analytics 2
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nd Edition by Laura Davis Wiley, Johnson and Moroney
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All Chapters 1-16 as as

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Chapter 1 Introduction and Overview of Audit and Assurance Cha
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pter 2 Professionalism and Professional Responsibilities Chapter 3
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Risk Assessment Part I: Audit Risk and Audit Strategy Chapter 4 R
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isk Assessment Part II: Understanding the Client Chapter 5 Audit E
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vidence

Chapter 6 Gaining an Understanding of the Client's System of Internal Control Cha
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pter 7 Risk Response: Performing Tests of Controls
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Chapter 8 Audit Data Analytics as as as as




Chapter 9 Risk Response: Performing Substantive Procedures Chapte
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r 10 Risk Response: Audit Sampling for Substantive Procedures Chapt
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er11 Auditing the Revenue Process
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Chapter 12 Auditing the Purchasing and Payroll Processes
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Chapter 13 Auditing Cash, Inventory and Related Income Statement Accounts Chap
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ter 14 Auditing Investing and Financing Activities
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Chapter 15 Completing the Audit Chapt
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er 16 Reporting on the Audit
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,Questions Type: True or False
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Chapter 1 Introduction and Overview of Audit and Assurance
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1. GAAP and IFRS are examples of applicable financial reporting framework.
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Reporting, AACSB: Communication, Learning
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Objective: LO1.1, Solution: The applicable financial reporting framework refers to the set of standards used in p
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reparing the historical financial statements, such as GAAP, IFRS or a Federal Income Tax Basis of Accounting.
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2. Review of financial forecasts falls under attestation services.
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Measurement Analysis and Interpretation, AAC
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SB: Ethics, Learning Objective: LO1.1, Solution: Attestation services (under the umbrella of assurance services) i
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nclude review of historical financial statements, review of financial forecasts, and examination of internal con
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trol.



3. Within a U.S. context, the applicable financial reporting framework is typically Generally Accepted
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Accounting Principles (GAAP). as as




A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Measurement Analysis and Interpretation, AAC
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SB: Ethics, Learning Objective: LO1.2, Solution: Within a U.S. context, the applicable financial reporting frame
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work is typically generally accepted accounting principles (GAAP).
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4. Private companies, or non-
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issuers, are not required by the U.S. government to have an annual financial statement audit
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Reporting, AACSB: Analytic, Learning Objective: L
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O1.2, Solution: Private companies, or non-issuers, are not required by the
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U.S. government to have an annual financial statement audit, but often other interested users, such as a bank or
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slender, may request that a private company provide audited financial statements.
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, 5. One of the reasons there is a demand for financial statement audits is that users of financi
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al statements often lack accounting and legal knowledge to fully understand complex accoun
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ting and disclosure choices.
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A. True
B. False
Answer: A, Taxonomy: Comprehension, Difficulty: Easy, AICPA PC: Communication, AACSB: Analytic, Learning
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a Objective: LO1.3, Solution: Complexity: Financial statements are complex, the amounts are often affected by
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significant estimates, and the disclosures often require significant knowledge and experience to evaluate. Most
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s financial statement users do not have the accounting and legal knowledge to assess the reasonableness of co
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mplex accounting and disclosure choices being made by the company.
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6. In financial accounting, the balance sheet is a statement of financial position
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA PC: Communication, AACSB: Analytic, Learning Objec
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tive: LO1.3, Solution: In financial accounting, the financial statements include the balance sheet (statement of f
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inancial position), income statement (statement of comprehensive income), statement of cash flows, stateme
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nt of changes in equity and accompanying notes.
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7. Business valuation falls within the purview of non-assurance services.
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Measurement Analysis and Interpretation, AACS
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B: Analytic, Learning Objective: LO1.4, Solution: Many of these accounting firms provide non-assurance (or non-
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audit) services as well as assurance services. These non-
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assurance services include management consulting, business valuation, mergers and acquisitions, insolvency,
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tax and accounting services.
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