TEST BANK For Auditing & Assurance Services: A
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Systematic Approach, 12th Edition
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Chapters 1 - 21 Complete
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,
,Chapter 1: An Introduction to Assurance and Financial Statement Auditing
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Chapter 2: The Financial Statement Auditing Environment
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Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
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Chapter 4: Risk Assessment
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Chapter 5: Evidence and Documentation
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Chapter 6: Internal Control in a Financial Statement Audit
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Chapter 7: Auditing Internal Control over Financial Reporting
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Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls
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Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Balances
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Chapter 10: Auditing the Revenue Process
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Chapter 11: Auditing the Purchasing Process
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Chapter 12: Auditing the Human Resource Management Process
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Chapter 13: Auditing the Inventory Management Process
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Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and
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Property, Plant, and Equipment
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Chapter 15: Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders’
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Equity, and Income Statement Accounts
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Chapter 16: Auditing the Financing/Investing Process: Cash and Investments
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Chapter 17: Completing the Audit Engagement
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Chapter 18: Reports on Audited Financial Statements
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Chapter 19: Professional Conduct, Independence, and Quality Management
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Chapter 20: Legal Liability
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Chapter 21: Assurance, Attestation, and Internal Auditing Services
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, Auditing & Assurance Services: A Systematic Approach, 12e (Messier)
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Chapter 1 An Introduction to Assurance and Financial Statement Auditing
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1) Auditing focuses on rules, techniques, and computations required to prepare and
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analyze financial information.
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ANSWER: FALSE b n
Difficulty: 1 Easy
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Topic: The Importance for Studying Auditing
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Learning Objective: 01-01 Understand why studying auditing can be valuable to you whether
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or not you plan to become an auditor, and why it is different from studying accounting.
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Bloom's: Remember b n
AACSB: Communication
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AICPA: BB Legal; FN Decision Making
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2) Decision makers demand reliable information that is provided by accountants.
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ANSWER: TRUE b n
Difficulty: 1 Easy
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Topic: The Demand for Auditing and Assurance
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Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
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desired characteristics of auditors and audit services through an analogy to a house
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inspector and a house inspection service.
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Bloom's: Understand b n
AACSB: Communication
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AICPA: FN Decision Making; BB Industry
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3) Information asymmetry seldom occurs. bn bn bn
ANSWER: FALSE b n
Difficulty: 2 Medium
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Topic: The Demand for Auditing and Assurance
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Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
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desired characteristics of auditors and audit services through an analogy to a house
bn bn bn bn bn bn bn bn bn bn bn bn bn
inspector and a house inspection service.
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Bloom's: Apply b n
AACSB: Communication
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AICPA: BB Industry; FN Reporting
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Systematic Approach, 12th Edition
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Chapters 1 - 21 Complete
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,
,Chapter 1: An Introduction to Assurance and Financial Statement Auditing
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Chapter 2: The Financial Statement Auditing Environment
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Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
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Chapter 4: Risk Assessment
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Chapter 5: Evidence and Documentation
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Chapter 6: Internal Control in a Financial Statement Audit
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Chapter 7: Auditing Internal Control over Financial Reporting
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Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls
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Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Balances
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Chapter 10: Auditing the Revenue Process
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Chapter 11: Auditing the Purchasing Process
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Chapter 12: Auditing the Human Resource Management Process
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Chapter 13: Auditing the Inventory Management Process
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Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and
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Property, Plant, and Equipment
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Chapter 15: Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders’
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Equity, and Income Statement Accounts
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Chapter 16: Auditing the Financing/Investing Process: Cash and Investments
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Chapter 17: Completing the Audit Engagement
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Chapter 18: Reports on Audited Financial Statements
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Chapter 19: Professional Conduct, Independence, and Quality Management
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Chapter 20: Legal Liability
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Chapter 21: Assurance, Attestation, and Internal Auditing Services
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, Auditing & Assurance Services: A Systematic Approach, 12e (Messier)
bn bn bn bn bn bn bn bn
Chapter 1 An Introduction to Assurance and Financial Statement Auditing
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1) Auditing focuses on rules, techniques, and computations required to prepare and
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analyze financial information.
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ANSWER: FALSE b n
Difficulty: 1 Easy
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Topic: The Importance for Studying Auditing
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Learning Objective: 01-01 Understand why studying auditing can be valuable to you whether
bn b n bn bn bn bn bn bn bn bn bn bn
or not you plan to become an auditor, and why it is different from studying accounting.
bn bn bn bn bn bn bn bn bn bn bn bn bn bn bn bn
Bloom's: Remember b n
AACSB: Communication
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AICPA: BB Legal; FN Decision Making
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2) Decision makers demand reliable information that is provided by accountants.
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ANSWER: TRUE b n
Difficulty: 1 Easy
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Topic: The Demand for Auditing and Assurance
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Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
bn b n bn bn bn bn bn bn bn bn bn bn bn
desired characteristics of auditors and audit services through an analogy to a house
bn bn bn bn bn bn bn bn bn bn bn bn bn
inspector and a house inspection service.
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Bloom's: Understand b n
AACSB: Communication
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AICPA: FN Decision Making; BB Industry
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3) Information asymmetry seldom occurs. bn bn bn
ANSWER: FALSE b n
Difficulty: 2 Medium
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Topic: The Demand for Auditing and Assurance
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Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
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desired characteristics of auditors and audit services through an analogy to a house
bn bn bn bn bn bn bn bn bn bn bn bn bn
inspector and a house inspection service.
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Bloom's: Apply b n
AACSB: Communication
b n
AICPA: BB Industry; FN Reporting
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