BESTLEC
Test Bank
Auditing and Assurance Services a Systematic Approach, 12th Edition
by Messier, Glover, Prawitt.
All Chapters Covered- Latest Covered- 100% Verified Answers
C
LE
ST
BE
1
,TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Auditing focuses on rules, techniques, and computations required to prepare and analyze
financial information.
1)
⊚ true
⊚ false
2) Decision makers demand reliable information that is provided by accountants and
C
accounting information systems.
LE 2)
⊚ true
⊚ false
ST
3) Information asymmetry seldom occurs.
BE
3)
⊚ true
⊚ false
4) Conflicts of interest often occur between absentee owners(principals) and managers
(agents).
, ⊚ true
⊚ false
5) Auditing services and attestation services are exactly the same thing.
⊚ true
⊚ false
C
6) Auditing is a type of attest service.
LE
ST
⊚ true
⊚ false
BE
4) Testing all transactions that occurred during the period is cost prohibitive in the absence
of computer data analytic approaches.
7)
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
, answers the question.
5) Why do auditors often use a sampling approach to evidence gathering?
8)
A) Auditors are experts and do not need to look at much to know whether the financial
statements are correct or not.
B) Auditors must balance the cost of the audit with the need for precision and for some
types of evidence, 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
C
not have access to all of the financial information of the company.
LE
6) Which of the following statements best describes a relationship between sample size and
ST
other elements of auditing?
A) If materiality increases, so will the sample size.
BE
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.
7) Which of the following statements about the study of auditing is NOT true?
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
Test Bank
Auditing and Assurance Services a Systematic Approach, 12th Edition
by Messier, Glover, Prawitt.
All Chapters Covered- Latest Covered- 100% Verified Answers
C
LE
ST
BE
1
,TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Auditing focuses on rules, techniques, and computations required to prepare and analyze
financial information.
1)
⊚ true
⊚ false
2) Decision makers demand reliable information that is provided by accountants and
C
accounting information systems.
LE 2)
⊚ true
⊚ false
ST
3) Information asymmetry seldom occurs.
BE
3)
⊚ true
⊚ false
4) Conflicts of interest often occur between absentee owners(principals) and managers
(agents).
, ⊚ true
⊚ false
5) Auditing services and attestation services are exactly the same thing.
⊚ true
⊚ false
C
6) Auditing is a type of attest service.
LE
ST
⊚ true
⊚ false
BE
4) Testing all transactions that occurred during the period is cost prohibitive in the absence
of computer data analytic approaches.
7)
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
, answers the question.
5) Why do auditors often use a sampling approach to evidence gathering?
8)
A) Auditors are experts and do not need to look at much to know whether the financial
statements are correct or not.
B) Auditors must balance the cost of the audit with the need for precision and for some
types of evidence, 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
C
not have access to all of the financial information of the company.
LE
6) Which of the following statements best describes a relationship between sample size and
ST
other elements of auditing?
A) If materiality increases, so will the sample size.
BE
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.
7) Which of the following statements about the study of auditing is NOT true?
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
