TestBank for Auditing A Practical Approach, 4th
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Canadian Edition 4th Edition, Kindle Edition by Rob
b b b b b b b
yn Moroney , Fiona Campbell , Jane
b b b b b b b
Hamilton , Valerie Warren
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b
b
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CHAPTER 1 b b
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANCE
b b b b b b b
CHAPTER LEARNING OBJECTIVES
b b b
b
, TESTbBANKbforbAuditingbAbPracticalbApproach,b4thbCanadianbEditionbMoroney,bCampbell,bWarrenb
Stuvia.comb-bThebMarketplacebtobBuybandbSellbyourbStudybMaterialb
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-
approach-4th-c b
b
1. Definebanbassurancebengagement.b
Anbassurancebengagementbinvolvesbanbassurancebproviderbarrivingbatanbopinionbaboutbsomebi
nformationbbeingbprovidedbbybtheirbclientbtoabthirdbparty.bAbfinancialbstatementbauditbisbonebtyp
ebofbassuranceengagement.bThisbengagementbinvolvesbanbauditorbarrivingbatbanbopinionabout
b thebfairbpresentationbofbthebfinancialbstatements.bThebauditreportbisbaddressedbtobthebsharehol
dersbofbthebcompanybbeingbaudited,butbotherbusersbmaybreadbthebfinancialbstatements.bLearni
ngbaboutauditingbandbassurancebrequiresbanbunderstandingbofbauditingbandassurancebtermino
logy,bincludingbtermsbsuchbasbauditbrisk,bmateriality,internalbcontrols,blistedbentity,bandbassertio
ns.b
b
b
2. Explainbwhybtherebisbabdemandbforbauditbandbassurancebservices.b
Financialbstatementbusersbincludebinvestorsb(shareholders),bsuppliers,customers,blenders,bempl
oyees,bgovernments,bandbthebgeneralbpublic.Thesebgroupsbofbusersbdemandbauditedbfinancialbs
tatementsbbecauseboftheirbremotenessbfrombthebentity,baccountingbcomplexity,btheirincentivesc
ompetingbwithbthosebofbthebentity‘sbmanagers,bandbtheirbneedforbreliablebinformationbonbwhichbto
b basebdecisions.bThebtheoriesbusedtobdescribebthebdemandbforbauditbandbassurancebservicesbar
ebagencytheory,bthebinformationbhypothesis,bandbthebinsurancebhypothesis.b
b
b
b
3. Differentiatebbetweenbtypesbofbassurancebservices.b
Assurancebservicesbincludebfinancialbstatementbaudits,bcomplianceaudits,bperformance
b audits,bcomprehensivebaudits,binternalbaudits,andbassurancebonbcorporatebsocialbrespo
nsibilityb(CSR)bdisclosures.b
b
b
4. Explainbthebdifferentblevelsbofbassurance.b
Thebdifferentblevelsbofbassurancebincludebreasonablebassurance,bwhichisbthebhighestblevelbofbass
urance,blimitedbassurance,bandbnobassurance.Reasonablebassurancebisbprovidedbonbanbauditbofb
abcompany‘sfinancialbstatements.bLimitedbassurancebisbprovidedbinbabreviewbofb
acompany‘sbfinancialDsotwantelomadeednbtsy:.BNRoIGaHTsEsRuSraTUnDcIeESis|
ilmationengagemWeannttt.obearnb$1.236bb ayegaer?2b
b
b
5. Outlinebdifferentbauditbopinionsb
Anbauditorbcanbissuebanbunmodifiedbopinion,balsobknownbasbabcleanreport,borbanbunmodifiedbopi
nionbwithbanbemphasisbofbmatterbparagraph.Alternatively,babmodifiedbopinionbmaybbebissuedbas
b abqualified,banadverse,borbabdisclaimerbofbopinion.b
b
b
Distributionbofbthisbdocumentbisbillegalb extrabperb
A+
b
P b
, TESTbBANKbforbAuditingbAbPracticalbApproach,b4thbCanadianbEditionbMoroney,bCampbell,bWarrenb
Stuvia.comb-bThebMarketplacebtobBuybandbSellbyourbStudybMaterialb
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-
approach-4th-c b
6. Differentiatebbetweenbthebrolesbofbthebpreparerbandbthebauditor,bandbdiscussbthebdifferentbfi
rmsbthatbprovidebassurancebservices.b
Itbisbthebresponsibilitybofbabcompany‘sbgoverningbbodybtobensurebthatitsbfinancialbstatementsba
rebrelevant,breliable,bcomparable,bunderstandable,andbtruebandbfair.bItbisbthebresponsibilitybofbt
hebauditorbtobformbanopinionbonbthebfairbpresentationbofbthebfinancialbstatements.bInbdoing,sob
1-b2bAuditing:bAbPracticalbApproach,bFourthbCanadianbEditionb
b
b
thebauditorbmustbmaintainbprofessionalbscepticismbandbutilizebprofessionaljudgementbandbduebcare
.b
b
ThebfirmsbthatbprovidebassurancebservicesbincludebthebBig-
4internationalbfirms,bthebnationalbfirmsb(withbinternationalblinks),localbandbregionalbfirms,ban
dbconsultingbfirmsbthatbtendbtobspecializeinbassurancebofbCSRbandbenvironmentalbdisclosur
es.b
b
b
7.bIdentifybthebdifferentbregulators,blegislation,bandbregulationsbsurroundingbthebassuranc
ebprocess.b
lOMoAR b bb b b b
cPSD | 30878 49 5
b
b
b
b
b
b
b
b
b
b
b
b
b
b
IntroductionbandbOverviewbofbAuditbandbAssuranceb 1b-b3b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b b
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ayegaer?3b
Downloadedbby:bBRIGHTERSTUDIESb| Wantbtobearnb$1.236b
A+b Distributionbofbthisbdocumentbisbillegalb extrabpePrb b
, TESTbBANKbforbAuditingbAbPracticalbApproach,b4thbCanadianbEditionbMoroney,bCampbell,bWarrenb
Stuvia.comb-bThebMarketplacebtobBuybandbSellbyourbStudybMaterialb
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-
approach-4th-c b
b
TRUE-FALSE STATEMENTS b b
b
1. Onlybcurrentbinvestorsb(notbpotentialbinvestors)barebconsideredbtobbebusersbofbthebfin
ancialbstatements.b
b
Answer:bFalseb
b
b
Bloomcode:bKnowledgeb
Difficulty:bEasyb
LearningbObjective:bExplainbwhybtherebisbabdemandbforbauditbandbassurancebservices.b
SectionbReference:b1.2bDemandbforbauditbandbassurancebservicesb
CPAbCompetency:bAuditbandbAssurancebAACSB
:bAnalyticb
b
b
2. Insurancebhypothesisbisbabmeansbwherebybthebinvestorbcanbguaranteebthebsuccessb
ofbtheirbinvestment.b
b
Answer:bFalseb
b
b
Bloomcode:bComprehensionb
Difficulty:bMediumb
LearningbObjective:bExplainbwhybtherebisbabdemandbforbauditbandbassurancebservices.b
SectionbReference:b1.2bDemandbforbauditbandbassurancebservicesb
CPAbCompetency:bAuditbandbAssurancebAACSB
:bAnalyticb
b
b
b
3. Abcompliancebauditbinvolvesbgatheringbevidencebtobascertainbwhetherbthebpersonborb
entitybunderbreviewbhasbfollowedbthebrules,bpolicies,bprocedures,blawsbandbregulationsbwithbw
hichbtheybmustbconformb
b
Answer:bTrueb
b
b
Bloomcode:bComprehensionb
Difficulty:bMediumb
LearningbObjective:bDifferentiatebbetweenbtypesbofbassurancebservices.b
SectionbReference:b1.3 bDifferentbassurancebservicesb
Downloadedbby:bBRIGHTERSTUDIESb| Wantbtobearnb$1.236b
b
Distributionbofbthisbdocumentbisbillegalb extrabpePrbayegaer?4bb
A+b
b b b b b b b
Canadian Edition 4th Edition, Kindle Edition by Rob
b b b b b b b
yn Moroney , Fiona Campbell , Jane
b b b b b b b
Hamilton , Valerie Warren
b b b bbbb
b
b
b
b
b
b
CHAPTER 1 b b
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANCE
b b b b b b b
CHAPTER LEARNING OBJECTIVES
b b b
b
, TESTbBANKbforbAuditingbAbPracticalbApproach,b4thbCanadianbEditionbMoroney,bCampbell,bWarrenb
Stuvia.comb-bThebMarketplacebtobBuybandbSellbyourbStudybMaterialb
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-
approach-4th-c b
b
1. Definebanbassurancebengagement.b
Anbassurancebengagementbinvolvesbanbassurancebproviderbarrivingbatanbopinionbaboutbsomebi
nformationbbeingbprovidedbbybtheirbclientbtoabthirdbparty.bAbfinancialbstatementbauditbisbonebtyp
ebofbassuranceengagement.bThisbengagementbinvolvesbanbauditorbarrivingbatbanbopinionabout
b thebfairbpresentationbofbthebfinancialbstatements.bThebauditreportbisbaddressedbtobthebsharehol
dersbofbthebcompanybbeingbaudited,butbotherbusersbmaybreadbthebfinancialbstatements.bLearni
ngbaboutauditingbandbassurancebrequiresbanbunderstandingbofbauditingbandassurancebtermino
logy,bincludingbtermsbsuchbasbauditbrisk,bmateriality,internalbcontrols,blistedbentity,bandbassertio
ns.b
b
b
2. Explainbwhybtherebisbabdemandbforbauditbandbassurancebservices.b
Financialbstatementbusersbincludebinvestorsb(shareholders),bsuppliers,customers,blenders,bempl
oyees,bgovernments,bandbthebgeneralbpublic.Thesebgroupsbofbusersbdemandbauditedbfinancialbs
tatementsbbecauseboftheirbremotenessbfrombthebentity,baccountingbcomplexity,btheirincentivesc
ompetingbwithbthosebofbthebentity‘sbmanagers,bandbtheirbneedforbreliablebinformationbonbwhichbto
b basebdecisions.bThebtheoriesbusedtobdescribebthebdemandbforbauditbandbassurancebservicesbar
ebagencytheory,bthebinformationbhypothesis,bandbthebinsurancebhypothesis.b
b
b
b
3. Differentiatebbetweenbtypesbofbassurancebservices.b
Assurancebservicesbincludebfinancialbstatementbaudits,bcomplianceaudits,bperformance
b audits,bcomprehensivebaudits,binternalbaudits,andbassurancebonbcorporatebsocialbrespo
nsibilityb(CSR)bdisclosures.b
b
b
4. Explainbthebdifferentblevelsbofbassurance.b
Thebdifferentblevelsbofbassurancebincludebreasonablebassurance,bwhichisbthebhighestblevelbofbass
urance,blimitedbassurance,bandbnobassurance.Reasonablebassurancebisbprovidedbonbanbauditbofb
abcompany‘sfinancialbstatements.bLimitedbassurancebisbprovidedbinbabreviewbofb
acompany‘sbfinancialDsotwantelomadeednbtsy:.BNRoIGaHTsEsRuSraTUnDcIeESis|
ilmationengagemWeannttt.obearnb$1.236bb ayegaer?2b
b
b
5. Outlinebdifferentbauditbopinionsb
Anbauditorbcanbissuebanbunmodifiedbopinion,balsobknownbasbabcleanreport,borbanbunmodifiedbopi
nionbwithbanbemphasisbofbmatterbparagraph.Alternatively,babmodifiedbopinionbmaybbebissuedbas
b abqualified,banadverse,borbabdisclaimerbofbopinion.b
b
b
Distributionbofbthisbdocumentbisbillegalb extrabperb
A+
b
P b
, TESTbBANKbforbAuditingbAbPracticalbApproach,b4thbCanadianbEditionbMoroney,bCampbell,bWarrenb
Stuvia.comb-bThebMarketplacebtobBuybandbSellbyourbStudybMaterialb
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-
approach-4th-c b
6. Differentiatebbetweenbthebrolesbofbthebpreparerbandbthebauditor,bandbdiscussbthebdifferentbfi
rmsbthatbprovidebassurancebservices.b
Itbisbthebresponsibilitybofbabcompany‘sbgoverningbbodybtobensurebthatitsbfinancialbstatementsba
rebrelevant,breliable,bcomparable,bunderstandable,andbtruebandbfair.bItbisbthebresponsibilitybofbt
hebauditorbtobformbanopinionbonbthebfairbpresentationbofbthebfinancialbstatements.bInbdoing,sob
1-b2bAuditing:bAbPracticalbApproach,bFourthbCanadianbEditionb
b
b
thebauditorbmustbmaintainbprofessionalbscepticismbandbutilizebprofessionaljudgementbandbduebcare
.b
b
ThebfirmsbthatbprovidebassurancebservicesbincludebthebBig-
4internationalbfirms,bthebnationalbfirmsb(withbinternationalblinks),localbandbregionalbfirms,ban
dbconsultingbfirmsbthatbtendbtobspecializeinbassurancebofbCSRbandbenvironmentalbdisclosur
es.b
b
b
7.bIdentifybthebdifferentbregulators,blegislation,bandbregulationsbsurroundingbthebassuranc
ebprocess.b
lOMoAR b bb b b b
cPSD | 30878 49 5
b
b
b
b
b
b
b
b
b
b
b
b
b
b
IntroductionbandbOverviewbofbAuditbandbAssuranceb 1b-b3b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b b
b bb b
b b
b b
b b
b b
b b
b
b b
ayegaer?3b
Downloadedbby:bBRIGHTERSTUDIESb| Wantbtobearnb$1.236b
A+b Distributionbofbthisbdocumentbisbillegalb extrabpePrb b
, TESTbBANKbforbAuditingbAbPracticalbApproach,b4thbCanadianbEditionbMoroney,bCampbell,bWarrenb
Stuvia.comb-bThebMarketplacebtobBuybandbSellbyourbStudybMaterialb
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-
approach-4th-c b
b
TRUE-FALSE STATEMENTS b b
b
1. Onlybcurrentbinvestorsb(notbpotentialbinvestors)barebconsideredbtobbebusersbofbthebfin
ancialbstatements.b
b
Answer:bFalseb
b
b
Bloomcode:bKnowledgeb
Difficulty:bEasyb
LearningbObjective:bExplainbwhybtherebisbabdemandbforbauditbandbassurancebservices.b
SectionbReference:b1.2bDemandbforbauditbandbassurancebservicesb
CPAbCompetency:bAuditbandbAssurancebAACSB
:bAnalyticb
b
b
2. Insurancebhypothesisbisbabmeansbwherebybthebinvestorbcanbguaranteebthebsuccessb
ofbtheirbinvestment.b
b
Answer:bFalseb
b
b
Bloomcode:bComprehensionb
Difficulty:bMediumb
LearningbObjective:bExplainbwhybtherebisbabdemandbforbauditbandbassurancebservices.b
SectionbReference:b1.2bDemandbforbauditbandbassurancebservicesb
CPAbCompetency:bAuditbandbAssurancebAACSB
:bAnalyticb
b
b
b
3. Abcompliancebauditbinvolvesbgatheringbevidencebtobascertainbwhetherbthebpersonborb
entitybunderbreviewbhasbfollowedbthebrules,bpolicies,bprocedures,blawsbandbregulationsbwithbw
hichbtheybmustbconformb
b
Answer:bTrueb
b
b
Bloomcode:bComprehensionb
Difficulty:bMediumb
LearningbObjective:bDifferentiatebbetweenbtypesbofbassurancebservices.b
SectionbReference:b1.3 bDifferentbassurancebservicesb
Downloadedbby:bBRIGHTERSTUDIESb| Wantbtobearnb$1.236b
b
Distributionbofbthisbdocumentbisbillegalb extrabpePrbayegaer?4bb
A+b
