Test Bank for Auditing & Assurance Services A Systematic Approach 12e Messier 2025!!|| All Chapter ( 1-21 ) A+

TEST BANK FOR v v




Auditing & Assurance Services A Systematic Approach 12e Messier
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v Chapter 1-21 Answers are at the End of Each Chapter
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Chapter 1 v




Student name: v




1) Why do auditors often use a sampling approach to evidence gathering?
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1) v




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.
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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 v


AACSB : Communication
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AICPA : FN Decision Making
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Accessibility : Keyboard Navigationv v v


Difficulty : 1 Easy
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AICPA : BB Industry
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Bloom's : Understand
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Learning Objective : 01-05 Understand why sampling is important in an audit.
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Gradable : automatic
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Accessibility : Screen Reader Compatible
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Topic : 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) v

, 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.
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Question Detailsv


Accessibility : Keyboard Navigation
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Bloom's : Apply
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Difficulty : 2 Medium
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AICPA : BB Critical Thinking
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AACSB
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Thinking AICPA : FN Risk
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Analysis
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Learning Objective : 01-05 Understand why sampling is important in an audit.
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Gradable : automatic
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Accessibility : Screen Reader Compatible
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Topic : 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) v




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
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techniques useful for gathering and analyzing evidence about others’ assertions.
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,Question Details v


AACSB : Communication
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AICPA : FN Decision Making
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Accessibility : Keyboard Navigation v v v


Learning Objective : 01-01 Understand why studying auditing can be valuable to you whether or not
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you AICPA : BB Industry
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Difficulty : 2 Medium v v v


Bloom's : Analyze
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Gradable : automatic
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Accessibility : Screen Reader Compatible v v v v


Topic : 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) v




A) detect fraud. v



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 v


AACSB : Communication
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Accessibility : Keyboard Navigation
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Bloom's : Remember
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Difficulty : 1 Easy v v v


AICPA : FN Reporting
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Learning Objective : 01-03 Know the basic definition of a financial statement
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audit. AICPA : BB Critical Thinking
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Gradable : automatic v v


Accessibility : Screen Reader Compatible
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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) v

, A) relevance.
B) credibility.
C) periodicity.
D) reliability.



Question Detailsv


AACSB : Communication
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Accessibility : Keyboard Navigation
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Bloom's : Remember
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Difficulty : 1 Easyv v v


AICPA : BB Industry
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AICPA : FN Reporting
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Learning Objective : 01-03 Know the basic definition of a financial statement
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audit. Gradable : automatic
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Accessibility : Screen Reader Compatible
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Topic : Auditing, Attest, and Assurance Services Defined
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6) Evidence is reliable if it: v v v v



6) v




A) signals the true state of a management assertion.
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B) applies to the period being audited.v v v v v



C) relates to the audit assertion being tested.
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D) is sufficient to justify a conclusion.
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Question Detailsv


Accessibility : Keyboard Navigation
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Difficulty : 1 Easy
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Bloom's : Understand
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Learning Objective : 01-04 Understand the fundamental concepts that underlie financial statement audi
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AICPA : BB Critical Thinking
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AACSB : Analytical Thinking
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AICPA : FN Measurement
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Topic : Fundamental Concepts in Conducting a Financial Statement Audit
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Gradable : automatic
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Accessibility : Screen Reader Compatible
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