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Auditing & Assurance Services A Systematic Approach 12e Messier
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Chapter 1-21 zx Answers are at the End of Each Chapter
Chapter 1 zx
Student name: zx
1) Why do auditors often use a sampling approach to evidence gathering?
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1)
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A) Auditors are experts and do not need to look at much to know whether the financial
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statements are correct or not. zx zx zx zx
B) Auditors must balance the cost of the audit with the need for precision and for some types of
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evidence, computer data analytic approaches can’t be used.
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C) Auditors must limit their exposure to their auditee to maintain independence.
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D) The auditor's relationship with the auditee is generally adversarial, so the auditor will not
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have access to all of the financial information of the company.
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Question Details zx
AACSB : Communication AI
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CPA : FN Decision Making
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Accessibility : Keyboard Navigation Diffic zx zx zx zx
ulty : 1 Easy
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AICPA : BB Industry B
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loom's : Understand
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Learning Objective : 01-zx zx zx
05 Understand why sampling is important in an audit. Gradable : automatic
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Accessibility : Screen Reader Compatible T zx zx zx zx zx
opic : The Audit Process
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2) Which of the following statements best describes a relationship between sample size and
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other elements of auditing?
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2) zx
, A) If materiality increases, so will the sample size.
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B) If the desired level of assurance increases, sample sizes can be smaller.
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C) If materiality decreases, sample size will need to increase.
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D) There is no relationship between sample size and materiality or the desired level of
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assurance.
Question Details zx
Accessibility : Keyboard Navigation Bloo zx zx zx zx
m's : Apply zx zx
Difficulty : 2 Medium zx zx zx
AICPA : BB Critical Thinking
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AACSB : Analytical Th inkin
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g AICPA : FN Risk Analysis
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Learning Objective : 01- zx zx zx
05 Understand why sampling is important in an audit. Gradable : automatic
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Accessibility : Screen Reader Compatible T zx zx zx zx zx
opic : The Audit Process
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3) Which of the following statements about the study of auditing is NOT true?
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3) zx
A) The study of auditing can be valuable to future accountants and business decision makers
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whether or not they plan to become auditors.
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B) The study of auditing focuses on learning the analytical and logical skills necessary to
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evaluate the relevance and reliability of information.
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C) The study of auditing focuses on learning the rules, techniques, and computations required to
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analyze financial statements for making investment recommendations.
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D) The study of auditing begins with the understanding of a coherent logical framework and t
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echniques useful for gathering and analyzing evidence about others’ assertions.
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,Question Details zx
AACSB : Communication AI zx z x zx
CPA : FN Decision Making
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Accessibility : Keyboard Navigation zx zx zx
Learning Objective : 01- zx zx zx
01 Understand why studying auditing can be valuable to you whether or not you AICPA : BB Industry
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Difficulty : 2 Medium B zx zx zx zx
loom's : Analyze Grada zx zx zx
ble : automatic
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Accessibility : Screen Reader Compatible Top zx zx zx zx zx
ic : The Importance for Studying Auditing
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4) The basic definition of auditing essentially indicates that, overall, auditing is a process to:
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4) zx
A) detect fraud. zx
B) examine individual transactions so that the auditor may certify as to their validity.
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C) objectively obtain and evaluate evidence regarding assertions made by another party.
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D) assure the consistent application of correct accounting procedures.
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Question Details zx
AACSB : Communication Accessi zx z x zx
bility : Keyboard Navigation Bloom'
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s : Remember
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Difficulty : 1 Easy AIC zx zx zx zx
PA : FN Reporting
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Learning Objective : 01- zx zx zx
03 Know the basic definition of a financial statement audit. AICPA : BB Critical T
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hinking
Gradable : automatic zx zx
Accessibility : Screen Reader Compatible zx zx zx zx
Topic : Auditing, Attest, and Assurance Services Defined
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5) Assurance services may improve all of the following except:
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5) zx
, A) relevance.
B) credibility.
C) periodicity.
D) reliability.
Question Details zx
AACSB : Communication Accessi zx z x zx
bility : Keyboard Navigation Bloom'
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s : Remember
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Difficulty : 1 Easy AIC zx zx zx zx
PA : BB Industry AIC
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PA : FN Reporting
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Learning Objective : 01- zx zx zx
03 Know the basic definition of a financial statement audit. Gradable : automatic
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Accessibility : Screen Reader Compatible zx zx zx zx
Topic : Auditing, Attest, and Assurance Services Defined
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6) Evidence is reliable if it: zx zx zx zx
6)
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A) signals the true state of a management assertion.
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B) applies to the period being audited. zx zx zx zx zx
C) relates to the audit assertion being tested.
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D) is sufficient to justify a conclusion.
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Question Details zx
Accessibility : Keyboard Navigation Diffic zx zx zx zx
ulty : 1 Easy zx zx zx
Bloom's : Understand zx zx
Learning Objective : 01- zx zx zx
04 Understand the fundamental concepts that underlie financial statement audi AICPA : BB Critical Thi
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nking
AACSB : Analytical Thinking zx z x zx
AICPA : FN Measurement
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Topic : Fundamental Concepts in Conducting a Financial Statement Audit Gra
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dable : automatic zx zx
Accessibility : Screen Reader Compatible zx zx zx zx
Auditing & Assurance Services A Systematic Approach 12e Messier
zx zx zx zx zx zx zx zx zx
Chapter 1-21 zx Answers are at the End of Each Chapter
Chapter 1 zx
Student name: zx
1) Why do auditors often use a sampling approach to evidence gathering?
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1)
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A) Auditors are experts and do not need to look at much to know whether the financial
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statements are correct or not. zx zx zx zx
B) Auditors must balance the cost of the audit with the need for precision and for some types of
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evidence, computer data analytic approaches can’t be used.
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C) Auditors must limit their exposure to their auditee to maintain independence.
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D) The auditor's relationship with the auditee is generally adversarial, so the auditor will not
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have access to all of the financial information of the company.
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Question Details zx
AACSB : Communication AI
zx z x zx
CPA : FN Decision Making
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Accessibility : Keyboard Navigation Diffic zx zx zx zx
ulty : 1 Easy
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AICPA : BB Industry B
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loom's : Understand
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Learning Objective : 01-zx zx zx
05 Understand why sampling is important in an audit. Gradable : automatic
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Accessibility : Screen Reader Compatible T zx zx zx zx zx
opic : The Audit Process
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2) Which of the following statements best describes a relationship between sample size and
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other elements of auditing?
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2) zx
, A) If materiality increases, so will the sample size.
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B) If the desired level of assurance increases, sample sizes can be smaller.
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C) If materiality decreases, sample size will need to increase.
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D) There is no relationship between sample size and materiality or the desired level of
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assurance.
Question Details zx
Accessibility : Keyboard Navigation Bloo zx zx zx zx
m's : Apply zx zx
Difficulty : 2 Medium zx zx zx
AICPA : BB Critical Thinking
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AACSB : Analytical Th inkin
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g AICPA : FN Risk Analysis
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Learning Objective : 01- zx zx zx
05 Understand why sampling is important in an audit. Gradable : automatic
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Accessibility : Screen Reader Compatible T zx zx zx zx zx
opic : The Audit Process
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3) Which of the following statements about the study of auditing is NOT true?
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3) zx
A) The study of auditing can be valuable to future accountants and business decision makers
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whether or not they plan to become auditors.
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B) The study of auditing focuses on learning the analytical and logical skills necessary to
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evaluate the relevance and reliability of information.
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C) The study of auditing focuses on learning the rules, techniques, and computations required to
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analyze financial statements for making investment recommendations.
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D) The study of auditing begins with the understanding of a coherent logical framework and t
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echniques useful for gathering and analyzing evidence about others’ assertions.
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,Question Details zx
AACSB : Communication AI zx z x zx
CPA : FN Decision Making
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Accessibility : Keyboard Navigation zx zx zx
Learning Objective : 01- zx zx zx
01 Understand why studying auditing can be valuable to you whether or not you AICPA : BB Industry
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Difficulty : 2 Medium B zx zx zx zx
loom's : Analyze Grada zx zx zx
ble : automatic
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Accessibility : Screen Reader Compatible Top zx zx zx zx zx
ic : The Importance for Studying Auditing
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4) The basic definition of auditing essentially indicates that, overall, auditing is a process to:
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4) zx
A) detect fraud. zx
B) examine individual transactions so that the auditor may certify as to their validity.
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C) objectively obtain and evaluate evidence regarding assertions made by another party.
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D) assure the consistent application of correct accounting procedures.
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Question Details zx
AACSB : Communication Accessi zx z x zx
bility : Keyboard Navigation Bloom'
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s : Remember
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Difficulty : 1 Easy AIC zx zx zx zx
PA : FN Reporting
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Learning Objective : 01- zx zx zx
03 Know the basic definition of a financial statement audit. AICPA : BB Critical T
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hinking
Gradable : automatic zx zx
Accessibility : Screen Reader Compatible zx zx zx zx
Topic : Auditing, Attest, and Assurance Services Defined
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5) Assurance services may improve all of the following except:
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5) zx
, A) relevance.
B) credibility.
C) periodicity.
D) reliability.
Question Details zx
AACSB : Communication Accessi zx z x zx
bility : Keyboard Navigation Bloom'
zx zx zx zx
s : Remember
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Difficulty : 1 Easy AIC zx zx zx zx
PA : BB Industry AIC
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PA : FN Reporting
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Learning Objective : 01- zx zx zx
03 Know the basic definition of a financial statement audit. Gradable : automatic
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Accessibility : Screen Reader Compatible zx zx zx zx
Topic : Auditing, Attest, and Assurance Services Defined
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6) Evidence is reliable if it: zx zx zx zx
6)
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A) signals the true state of a management assertion.
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B) applies to the period being audited. zx zx zx zx zx
C) relates to the audit assertion being tested.
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D) is sufficient to justify a conclusion.
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Question Details zx
Accessibility : Keyboard Navigation Diffic zx zx zx zx
ulty : 1 Easy zx zx zx
Bloom's : Understand zx zx
Learning Objective : 01- zx zx zx
04 Understand the fundamental concepts that underlie financial statement audi AICPA : BB Critical Thi
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nking
AACSB : Analytical Thinking zx z x zx
AICPA : FN Measurement
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Topic : Fundamental Concepts in Conducting a Financial Statement Audit Gra
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dable : automatic zx zx
Accessibility : Screen Reader Compatible zx zx zx zx
