TEST BANK Auditing & Assurance Services: A Systematic Approach, 12th Edition By William Messier Jr, Steven Glover

TEST BANK
Auditing & Assurance Services: A Systematic Approach,
12th Edition By William Messier Jr, Steven Glover

,Chapter`1-21 Answers`are`at`the`End`of`Each`Chapter


Chapter`1
Student`name:
1) Why`do`auditors`often`use`a`sampling`approach`to`evidence`gathering?
1)`

A) Auditors`are`experts`and`do`not`need`to`look`at`much`to`know`whether`the`financial`s
tatements`are`correct`or`not.
B) Auditors`must`balance`the`cost`of`the`audit`with`the`need`for`precision`and`for`some`types`of`e
vidence,`computer`data`analytic`approaches`can’t`be`used.
C) Auditors`must`limit`their`exposure`to`their`auditee`to`maintain`independence.
D) The`auditor's`relationship`with`the`auditee`is`generally`adversarial,`so`the`auditor`will`not`
have`access`to`all`of`the`financial`information`of`the`company.



Question`Details
AACSB`:` Communication`AI
CPA`:`FN`Decision`Making
Accessibility`:`Keyboard`Navigation`Diffic
ulty`:`1`Easy
AICPA`:`BB`Industry`B
loom's`:`Understand
Learning`Objective`:`01-
05`Understand`why`sampling`is`important`in`an`audit.`Gradable`:`automatic
Accessibility`:`Screen`Reader`Compatible`
Topic`:`The`Audit`Process



2) Which`of`the`following`statements`best`describes`a`relationship`between`sample`size`and`
other`elements`of`auditing?
2)`

, A) If`materiality`increases,`so`will`the`sample`size.
B) If`the`desired`level`of`assurance`increases,`sample`sizes`can`be`smaller.
C) If`materiality`decreases,`sample`size`will`need`to`increase.
D) There`is`no`relationship`between`sample`size`and`materiality`or`the`desired`level`of`
assurance.



Question`Details
Accessibility`:`Keyboard`Navigation`Bloo
m's`:`Apply
Difficulty`:`2`Medium
AICPA`:`BB`Critical`Thinking
`AACSB`:` Analytical`Thinkin
g`AICPA`:`FN`Risk`Analysis
Learning`Objective`:`01-
05`Understand`why`sampling`is`important`in`an`audit.`Gradable`:`automatic
Accessibility`:`Screen`Reader`Compatible`
Topic`:`The`Audit`Process




3) Which`of`the`following`statements`about`the`study`of`auditing`is`NOT`true?
3)`


A) The`study`of`auditing`can`be`valuable`to`future`accountants`and`business`decision`makers`
whether`or`not`they`plan`to`become`auditors.
B) The`study`of`auditing`focuses`on`learning`the`analytical`and`logical`skills`necessary`to`
evaluate`the`relevance`and`reliability`of`information.
C) The`study`of`auditing`focuses`on`learning`the`rules,`techniques,`and`computations`required`to`
analyze`financial`statements`for`making`investment`recommendations.
D) The`study`of`auditing`begins`with`the`understanding`of`a`coherent`logical`framework`and`t
echniques`useful`for`gathering`and`analyzing`evidence`about`others’`assertions.

, Question`Details
AACSB`:` Communication`AI
CPA`:`FN`Decision`Making
Accessibility`:`Keyboard`Navigation
Learning`Objective`:`01-
01`Understand`why`studying`auditing`can`be`valuable`to`you`whether`or`not`you`AICPA`:`BB`Industry
Difficulty`:`2`Medium`
Bloom's`:`Analyze`Gra
dable`:`automatic
Accessibility`:`Screen`Reader`Compatible`Topi
c`:`The`Importance`for`Studying`Auditing




4) The`basic`definition`of`auditing`essentially`indicates`that,`overall,`auditing`is`a`process`to:
4)`


A) detect`fraud.
B) examine`individual`transactions`so`that`the`auditor`may`certify`as`to`their`validity.
C) objectively`obtain`and`evaluate`evidence`regarding`assertions`made`by`another`party.
D) assure`the`consistent`application`of`correct`accounting`procedures.



Question`Details
AACSB`:` Communication`Accessi
bility`:`Keyboard`Navigation`Bloom'
s`:`Remember
Difficulty`:`1`Easy`AIC
PA`:`FN`Reporting
Learning`Objective`:`01-
03`Know`the`basic`definition`of`a`financial`statement`audit.`AICPA`:`BB`Critical`T
hinking
Gradable`:`automatic
Accessibility`:`Screen`Reader`Compatible
Topic`:`Auditing,`Attest,`and`Assurance`Services`Defined




5) Assurance`services`may`improve`all`of`the`following`except:
5)`