TEST BANK For Auditing & Assurance Services A Systematic Approach,12thEdition Chapters 1 -21Complete

TEST BANK For Auditing & Assurance Services:
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A Systematic Approach, 12th Edition
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Chapters 1 - 21 Complete
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,Chapterv1:vAnvIntroductionvtovAssurancevandvFinancialvStatementvAuditingvCh

apterv2:vThevFinancialvStatementvAuditingvEnvironment

Chapterv3:vAuditvPlanning,vTypesvofvAuditvTests,vandvMaterialityvC

hapterv4:vRiskvAssessment

Chapterv5:vEvidencevandvDocumentation

Chapterv6:vInternalvControlvinvavFinancialvStatementvAuditvChapte

rv7:vAuditingvInternalvControlvovervFinancialvReporting

Chapterv8:vAuditvSampling:vAnvOverviewvandvApplicationvtovTestsvofvControlsvChapte

rv9:vAuditvSampling:vAnvApplicationvtovSubstantivevTestsvofvAccountvBalancesvChapter

v 10:vAuditingvthevRevenuevProcess

Chapterv11:vAuditingvthevPurchasingvProcess

Chapterv12:vAuditingvthevHumanvResourcevManagementvProcessvC

hapterv13:vAuditingvthevInventoryvManagementvProcess

Chapterv14:vAuditingvthevFinancing/InvestingvProcess:vPrepaidvExpenses,vIntangiblevAssets,va
ndvProperty,vPlant,vandvEquipment

Chapterv15:vAuditingvthevFinancing/InvestingvProcess:vLong-
TermvLiabilities,vStockholders’vEquity,vandvIncomevStatementvAccounts

Chapterv16:vAuditingvthevFinancing/InvestingvProcess:vCashvandvInvestmentsv

Chapterv17:vCompletingvthevAuditvEngagement

Chapterv18:vReportsvonvAuditedvFinancialvStatements

Chapterv19:vProfessionalvConduct,vIndependence,vandvQualityvManagementvC

hapterv20:vLegalvLiability

Chapterv21:vAssurance,vAttestation,vandvInternalvAuditingvServices

,Auditingv&vAssurancevServices:vAvSystematicvApproach,v12ev(Messier)
Chapterv1v AnvIntroductionvtovAssurancevandvFinancialvStatementvAuditing

1) Auditingvfocusesvonvrules,vtechniques,vandvcomputationsvrequiredvtovpreparevandvanalyzevf
inancialvinformation.

ANSWER:v FALSE
Difficulty:v1vEasy
Topic:v ThevImportancevforvStudyingvAuditing
LearningvObjective:v 01-
01vUnderstandvwhyvstudyingvauditingvcanvbevvaluablevtovyouvwhethervorvnotvyouvplanvtovbecomevanv
auditor,vandvwhyvitvisvdifferentvfromvstudyingvaccounting.
Bloom's:v RemembervAAC
SB:vCommunication
AICPA:v BBvLegal;vFNvDecisionvMaking

2) Decisionvmakersvdemandvreliablevinformationvthatvisvprovidedvbyvaccountants.

ANSWER:v TRUE
Difficulty:v1vEasy
Topic:v ThevDemandvforvAuditingvandvAssurance
LearningvObjective:v 01-
02vUnderstandvthevdemandvforvauditingvandvbevablevtovexplainvthevdesiredvcharacteristicsvofvaudito
rsvandvauditvservicesvthroughvanvanalogyvtovavhousevinspectorvandvavhousevinspectionvservice.
Bloom's:v UnderstandvAA
CSB:vCommunication
AICPA:v FNvDecisionvMaking;vBBvIndustry

3) Informationvasymmetryvseldomvoccurs.

ANSWER:v FALSE
Difficulty:v2vMedium
Topic:v ThevDemandvforvAuditingvandvAssurance
LearningvObjective:v 01-
02vUnderstandvthevdemandvforvauditingvandvbevablevtovexplainvthevdesiredvcharacteristicsvofvaudito
rsvandvauditvservicesvthroughvanvanalogyvtovavhousevinspectorvandvavhousevinspectionvservice.
Bloom's:v Apply
AACSB:v Communication
AICPA:v BBvIndustry;vFNvReporting

, 4) Conflictsvofvinterestvoftenvoccurvbetweenvabsenteevownersvandvmanagers.

ANSWER:v TRUE
Difficulty:v2vMedium
Topic:v ThevDemandvforvAuditingvandvAssurance
LearningvObjective:v 01-
02vUnderstandvthevdemandvforvauditingvandvbevablevtovexplainvthevdesiredvcharacteristicsvofvaudito
rsvandvauditvservicesvthroughvanvanalogyvtovavhousevinspectorvandvavhousevinspectionvservice.
Bloom's:v Apply
AACSB:v Communication
AICPA:v BBvIndustry;vFNvReporting

5) Auditingvservicesvandvattestationvservicesvarevthevsame.

ANSWER:v FALSE
Difficulty:v1vEasy
Topic:v Auditing,vAttest,vandvAssurancevServicesvDefined
LearningvObjective:v 01-
03vUnderstandvthevrelationshipsvamongvauditing,vattestation,vandvassurancevservices.
Bloom's:v UnderstandvAA
CSB:vCommunication
AICPA:v BBvIndustry;vFNvReporting

6) Auditingvisvavtypevofvattestvservice.

ANSWER:v TRUE
Difficulty:v1vEasy
Topic:v Auditing,vAttest,vandvAssurancevServicesvDefined
LearningvObjective:v 01-
03vUnderstandvthevrelationshipsvamongvauditing,vattestation,vandvassurancevservices.;v01-
04vKnowvthevbasicvdefinitionvofvavfinancialvstatementvaudit.
Bloom's:v UnderstandvAA
CSB:vCommunication
AICPA:v BBvIndustry;vFNvReporting

7) Testingvallvtransactionsvthatvoccurredvduringvthevperiodvisvcostvprohibitive.

ANSWER:v TRUE
Difficulty:v2vMediumvTopi
c:v ThevAuditvProcess
LearningvObjective:v 01-
06vBevablevtovexplainvwhyvonvmostvauditvengagementsvanvauditorvtestsvonlyvavsamplevofvtransactions
vthatvoccurred.

Bloom's:v Apply
AACSB:v Communication
AICPA:v FNvDecisionvMaking;vBBvCriticalvThinking