https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
TESTBANK FOR AUDITING A PRACTICAL APPROACH, 4
k k k k k k
TH CANADIAN EDITION 4TH EDITION, KINDLE EDITION BY
k k k k k k k k
ROBYN MORONEY , FIONA CAMPBELL , JANE HAMILTO
k k k k k k k
N , VALERIE WARREN
k k k
, TESTkBANKkforkAuditingkAkPracticalkApproach,k4thkCanadiankEditionkMoroney,kCampbell,kWarren
Stuvia.comk-kThekMarketplacektokBuykandkSellkyourkStudykMaterial
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
CHAPTER 1 k
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANCE
k k k k k k
CHAPTER LEARNING OBJECTIVES
k k
1. Definekankassurancekengagement.
Ankassurancekengagementkinvolveskankassurancekproviderkarrivingkatankopinionkaboutksomeki
nformationkbeingkprovidedkbyktheirkclientktoakthirdkparty.kAkfinancialkstatementkauditkiskonektyp
ekofkassuranceengagement.kThiskengagementkinvolveskankauditorkarrivingkatkankopinionabout
k thekfairkpresentationkofkthekfinancialkstatements.kThekauditreportkiskaddressedktoktheksharehol
derskofkthekcompanykbeingkaudited,butkotherkuserskmaykreadkthekfinancialkstatements.kLearni
ngkaboutauditingkandkassurancekrequireskankunderstandingkofkauditingkandassurancektermin
ology,kincludingktermsksuchkaskauditkrisk,kmateriality,internalkcontrols,klistedkentity,kandkasserti
ons.
2. Explainkwhyktherekiskakdemandkforkauditkandkassurancekservices.
Financialkstatementkuserskincludekinvestorsk(shareholders),ksuppliers,customers,klenders,ke
mployees,kgovernments,kandkthekgeneralkpublic.Thesekgroupskofkuserskdemandkauditedkfinan
cialkstatementskbecausekoftheirkremotenesskfromkthekentity,kaccountingkcomplexity,ktheirince
ntivescompetingkwithkthosekofkthekentity‘skmanagers,kandktheirkneedforkreliablekinformationkon
k whichktokbasekdecisions.kThektheorieskusedtokdescribekthekdemandkforkauditkandkassuranceks
erviceskarekagencytheory,kthekinformationkhypothesis,kandkthekinsurancekhypothesis.
3. Differentiatekbetweenktypeskofkassurancekservices.
Assurancekserviceskincludekfinancialkstatementkaudits,kcomplianceaudits,kperformancekaudits
,kcomprehensivekaudits,kinternalkaudits,andkassurancekonkcorporateksocialkresponsibilityk(CS
R)kdisclosures.
4. Explainkthekdifferentklevelskofkassurance.
Thekdifferentklevelskofkassurancekincludekreasonablekassurance,kwhichiskthekhighestklevelkofka
ssurance,klimitedkassurance,kandknokassurance.Reasonablekassurancekiskprovidedkonkankau
ditkofkakcompany‘sfinancialkstatements.kLimitedkassurancekiskprovidedkinkakreviewkof
acompany‘sk financial Dsotwante
l om ednbtsy:.BNRo
ade aTsEsRuSrTaUnDcIeESis|k jp
I GH roohvriadbehd
am in70a@cgm
asa omail.p
coilm
ationengagem
Weannttt.ok earnk $1.236
extrak pePrkayegaer?
A+ Distributionkofkthiskdocumentkiskillegal
2
, TESTkBANKkforkAuditingkAkPracticalkApproach,k4thkCanadiankEditionkMoroney,kCampbell,kWarren
Stuvia.comk-kThekMarketplacektokBuykandkSellkyourkStudykMaterial
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
5. Outlinekdifferentkauditkopinions
Ankauditorkcankissuekankunmodifiedkopinion,kalsokknownkaskakcleanreport,korkankunmodifiedkop
inionkwithkankemphasiskofkmatterkparagraph.Alternatively,kakmodifiedkopinionkmaykbekissuedka
skakqualified,kanadverse,korkakdisclaimerkofkopinion.
6. Differentiatekbetweenkthekroleskofkthekpreparerkandkthekauditor,kandkdiscusskthek
differentkfirmskthatkprovidekassurancekservices.
Itkiskthekresponsibilitykofkakcompany‘skgoverningkbodyktokensurekthatitskfinancialkstatementskar
ekrelevant,kreliable,kcomparable,kunderstandable,andktruekandkfair.kItkiskthekresponsibilitykofkth
ekauditorktokformkanopinionkonkthekfairkpresentationkofkthekfinancialkstatements.kInkdoing,sok1-
k 2kAuditing:kAkPracticalkApproach,kFourthkCanadiankEdition
thekauditorkmustkmaintainkprofessionalkscepticismkandkutilizekprofessionaljudgementkandkduek
care.
ThekfirmskthatkprovidekassurancekserviceskincludekthekBig-
4internationalkfirms,ktheknationalkfirmsk(withkinternationalklinks),localkandkregionalkfirms,kandkc
onsultingkfirmskthatktendktokspecializeinkassurancekofkCSRkandkenvironmentalkdisclosures.
7. Identifykthekdifferentkregulators,klegislation,kandkregulationsksurroundingkthek
assurancekprocess.
lO M k k k k k kk k k
o AR c P S D | 30 8 78 49 5
IntroductionkandkOverviewkofkAuditkandkAssurance 1k-k3
Downloadedkby:kBRIGHTERSTUDIESk| Wantktokearnk$1.236
extrak pePrkayegaer?
A+ Distributionkofkthiskdocumentkiskillegal
3
, TESTkBANKkforkAuditingkAkPracticalkApproach,k4thkCanadiankEditionkMoroney,kCampbell,kWarren
Stuvia.comk-kThekMarketplacektokBuykandkSellkyourkStudykMaterial
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
TRUE-FALSE STATEMENTS k
1. Onlykcurrentkinvestorsk(notkpotentialkinvestors)karekconsideredktokbekuserskofkthekfinancialk
statements.
Answer:kFalse
Bloomcode:kKnowledgekDiffic
ulty:kEasy
LearningkObjective:kExplainkwhyktherekiskakdemandkforkauditkandkassurancekservices.kSectio
nkReference:k1.2kDemandkforkauditkandkassurancekservices
CPAkCompetency:kAuditkandkAssurancekAACSB
:kAnalytic
2. Insurancekhypothesiskiskakmeanskwherebykthekinvestorkcankguaranteektheksuccesskofktheirki
nvestment.
Answer:kFalse
Bloomcode:kComprehensionk
Difficulty:kMedium
LearningkObjective:kExplainkwhyktherekiskakdemandkforkauditkandkassurancekservices.kSectio
nkReference:k1.2kDemandkforkauditkandkassurancekservices
CPAkCompetency:kAuditkandkAssurancekAACSB
:kAnalytic
3. Akcompliancekauditkinvolveskgatheringkevidencektokascertainkwhetherkthekpersonkorkentityk
underkreviewkhaskfollowedkthekrules,kpolicies,kprocedures,klawskandkregulationskwithkwhichkt
heykmustkconform
Answer:kTrue
Bloomcode:kComprehensionk
Difficulty:kMedium
LearningkObjective:kDifferentiatekbetweenktypeskofkassurancekservices.kSecti
onkReference:k1.3kDifferentkassurancekservices
CPAkCompetency:kAuditkandkAssurancekAACSB
:kAnalytic
Downloadedkby:kBRIGHTERSTUDIESk| Wantktokearnk$1.236
extrak pePrkayegaer?
A+ Distributionkofkthiskdocumentkiskillegal
3
TESTBANK FOR AUDITING A PRACTICAL APPROACH, 4
k k k k k k
TH CANADIAN EDITION 4TH EDITION, KINDLE EDITION BY
k k k k k k k k
ROBYN MORONEY , FIONA CAMPBELL , JANE HAMILTO
k k k k k k k
N , VALERIE WARREN
k k k
, TESTkBANKkforkAuditingkAkPracticalkApproach,k4thkCanadiankEditionkMoroney,kCampbell,kWarren
Stuvia.comk-kThekMarketplacektokBuykandkSellkyourkStudykMaterial
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
CHAPTER 1 k
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANCE
k k k k k k
CHAPTER LEARNING OBJECTIVES
k k
1. Definekankassurancekengagement.
Ankassurancekengagementkinvolveskankassurancekproviderkarrivingkatankopinionkaboutksomeki
nformationkbeingkprovidedkbyktheirkclientktoakthirdkparty.kAkfinancialkstatementkauditkiskonektyp
ekofkassuranceengagement.kThiskengagementkinvolveskankauditorkarrivingkatkankopinionabout
k thekfairkpresentationkofkthekfinancialkstatements.kThekauditreportkiskaddressedktoktheksharehol
derskofkthekcompanykbeingkaudited,butkotherkuserskmaykreadkthekfinancialkstatements.kLearni
ngkaboutauditingkandkassurancekrequireskankunderstandingkofkauditingkandassurancektermin
ology,kincludingktermsksuchkaskauditkrisk,kmateriality,internalkcontrols,klistedkentity,kandkasserti
ons.
2. Explainkwhyktherekiskakdemandkforkauditkandkassurancekservices.
Financialkstatementkuserskincludekinvestorsk(shareholders),ksuppliers,customers,klenders,ke
mployees,kgovernments,kandkthekgeneralkpublic.Thesekgroupskofkuserskdemandkauditedkfinan
cialkstatementskbecausekoftheirkremotenesskfromkthekentity,kaccountingkcomplexity,ktheirince
ntivescompetingkwithkthosekofkthekentity‘skmanagers,kandktheirkneedforkreliablekinformationkon
k whichktokbasekdecisions.kThektheorieskusedtokdescribekthekdemandkforkauditkandkassuranceks
erviceskarekagencytheory,kthekinformationkhypothesis,kandkthekinsurancekhypothesis.
3. Differentiatekbetweenktypeskofkassurancekservices.
Assurancekserviceskincludekfinancialkstatementkaudits,kcomplianceaudits,kperformancekaudits
,kcomprehensivekaudits,kinternalkaudits,andkassurancekonkcorporateksocialkresponsibilityk(CS
R)kdisclosures.
4. Explainkthekdifferentklevelskofkassurance.
Thekdifferentklevelskofkassurancekincludekreasonablekassurance,kwhichiskthekhighestklevelkofka
ssurance,klimitedkassurance,kandknokassurance.Reasonablekassurancekiskprovidedkonkankau
ditkofkakcompany‘sfinancialkstatements.kLimitedkassurancekiskprovidedkinkakreviewkof
acompany‘sk financial Dsotwante
l om ednbtsy:.BNRo
ade aTsEsRuSrTaUnDcIeESis|k jp
I GH roohvriadbehd
am in70a@cgm
asa omail.p
coilm
ationengagem
Weannttt.ok earnk $1.236
extrak pePrkayegaer?
A+ Distributionkofkthiskdocumentkiskillegal
2
, TESTkBANKkforkAuditingkAkPracticalkApproach,k4thkCanadiankEditionkMoroney,kCampbell,kWarren
Stuvia.comk-kThekMarketplacektokBuykandkSellkyourkStudykMaterial
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
5. Outlinekdifferentkauditkopinions
Ankauditorkcankissuekankunmodifiedkopinion,kalsokknownkaskakcleanreport,korkankunmodifiedkop
inionkwithkankemphasiskofkmatterkparagraph.Alternatively,kakmodifiedkopinionkmaykbekissuedka
skakqualified,kanadverse,korkakdisclaimerkofkopinion.
6. Differentiatekbetweenkthekroleskofkthekpreparerkandkthekauditor,kandkdiscusskthek
differentkfirmskthatkprovidekassurancekservices.
Itkiskthekresponsibilitykofkakcompany‘skgoverningkbodyktokensurekthatitskfinancialkstatementskar
ekrelevant,kreliable,kcomparable,kunderstandable,andktruekandkfair.kItkiskthekresponsibilitykofkth
ekauditorktokformkanopinionkonkthekfairkpresentationkofkthekfinancialkstatements.kInkdoing,sok1-
k 2kAuditing:kAkPracticalkApproach,kFourthkCanadiankEdition
thekauditorkmustkmaintainkprofessionalkscepticismkandkutilizekprofessionaljudgementkandkduek
care.
ThekfirmskthatkprovidekassurancekserviceskincludekthekBig-
4internationalkfirms,ktheknationalkfirmsk(withkinternationalklinks),localkandkregionalkfirms,kandkc
onsultingkfirmskthatktendktokspecializeinkassurancekofkCSRkandkenvironmentalkdisclosures.
7. Identifykthekdifferentkregulators,klegislation,kandkregulationsksurroundingkthek
assurancekprocess.
lO M k k k k k kk k k
o AR c P S D | 30 8 78 49 5
IntroductionkandkOverviewkofkAuditkandkAssurance 1k-k3
Downloadedkby:kBRIGHTERSTUDIESk| Wantktokearnk$1.236
extrak pePrkayegaer?
A+ Distributionkofkthiskdocumentkiskillegal
3
, TESTkBANKkforkAuditingkAkPracticalkApproach,k4thkCanadiankEditionkMoroney,kCampbell,kWarren
Stuvia.comk-kThekMarketplacektokBuykandkSellkyourkStudykMaterial
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
TRUE-FALSE STATEMENTS k
1. Onlykcurrentkinvestorsk(notkpotentialkinvestors)karekconsideredktokbekuserskofkthekfinancialk
statements.
Answer:kFalse
Bloomcode:kKnowledgekDiffic
ulty:kEasy
LearningkObjective:kExplainkwhyktherekiskakdemandkforkauditkandkassurancekservices.kSectio
nkReference:k1.2kDemandkforkauditkandkassurancekservices
CPAkCompetency:kAuditkandkAssurancekAACSB
:kAnalytic
2. Insurancekhypothesiskiskakmeanskwherebykthekinvestorkcankguaranteektheksuccesskofktheirki
nvestment.
Answer:kFalse
Bloomcode:kComprehensionk
Difficulty:kMedium
LearningkObjective:kExplainkwhyktherekiskakdemandkforkauditkandkassurancekservices.kSectio
nkReference:k1.2kDemandkforkauditkandkassurancekservices
CPAkCompetency:kAuditkandkAssurancekAACSB
:kAnalytic
3. Akcompliancekauditkinvolveskgatheringkevidencektokascertainkwhetherkthekpersonkorkentityk
underkreviewkhaskfollowedkthekrules,kpolicies,kprocedures,klawskandkregulationskwithkwhichkt
heykmustkconform
Answer:kTrue
Bloomcode:kComprehensionk
Difficulty:kMedium
LearningkObjective:kDifferentiatekbetweenktypeskofkassurancekservices.kSecti
onkReference:k1.3kDifferentkassurancekservices
CPAkCompetency:kAuditkandkAssurancekAACSB
:kAnalytic
Downloadedkby:kBRIGHTERSTUDIESk| Wantktokearnk$1.236
extrak pePrkayegaer?
A+ Distributionkofkthiskdocumentkiskillegal
3
