MEDSTUDY.COM
TEST BANK For Auditing & Assurance Services: A
Systematic Approach, 12th Edition by Messier
Chapters 1 - 21 Complete
,MEDSTUDY.COM
Chapter 1: An Introductionto Assuranceand Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning,lTypesofAudit Tests,land Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidenceand Documentation
Chapter 6: Internal Controlina Financial StatementlAudit
Chapter 7: Auditing Internal Controlover Financial Reporting
Chapter 8: AuditlSampling: An Overviewand Applicationto TestsofControls
Chapter 9: AuditlSampling: An ApplicationtolSubstantive TestsloflAccount Balances
Chapter 10: Auditingthe Revenue Process
Chapter 11: Auditingthe Purchasing Process
Chapter 12: Auditingthe Human Resource Management Process
Chapter 13: Auditingthe Inventory Management Process
Chapter 14: Auditingthe Financing/Investing Process:lPrepaid Expenses, IntangiblelAssets, and Property,
Plant,land Equipment
Chapter 15: Auditingthe Financing/Investing Process:lLong-
Term Liabilities, Stockholders’ Equity, and Income Statement Accounts
Chapter 16: Auditingthe Financing/Investing Process:lCashand Investments
Chapter 17: Completingthe Audit Engagement
Chapter 18: Reportson Audited Financial Statements
Chapter 19: Professional Conduct, Independence, and Quality Management
Chapter 20: Legal Liability
,MEDSTUDY.COM
Chapter 21: Assurance, Attestation, and Internal Auditing Services
Auditing& Assurance Services: ASystematic Approach,l12e(Messier) Chapter 1 An Intr
oductionto Assuranceand Financial Statement Auditing
1) Auditingfocusesonrules,ltechniques,andcomputationslrequiredtoprepareandanalyzefinan
cialinformation.
ANSWER:l FALSElDifficulty:
1Easy
Topic: TheImportanceforStudying Auditing
Learning Objective: 01-
01Understandwhystudyingauditingcanbevaluabletoyouwhetherornotlyouplantolbecomeanaudit
or, andwhyitlisdifferentfromstudyingaccounting.
Bloom's: Remember AACSB
: Communication
AICPA: BBLegal;FNDecisionMaking
2) Decisionmakersdemandreliableinformationthatislprovidedbyaccountants.
ANSWER:l TRUEDifficulty:
1Easy
Topic: The DemandforAuditingand Assurance
Learning Objective: 01-
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa
ndauditserviceslthroughananalogytoahouseinspectorandahouseinspectionservice.
Bloom's: Understand AACS
B:l Communication
AICPA: FNDecision Making;BBIndustry
3) Informationasymmetryseldomoccurs.
ANSWER:l FALSElDifficulty:
2Medium
Topic: The DemandforAuditingand Assurance
Learning Objective: 01-
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa
ndauditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
Bloom's: Apply
AACSB: Communication
AICPA: BBIndustry; FNReporting
,MEDSTUDY.COM
4) Conflictslofinterestoftenoccurbetweenlabsenteeownerslandmanagers.
ANSWER:l TRUEDifficulty:
2Medium
Topic: The DemandforAuditingand Assurance
Learning Objective: 01-
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa
ndauditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
Bloom's: Apply
AACSB: Communication
AICPA: BBIndustry; FNReporting
5) Auditingserviceslandattestationserviceslarethelsame.
ANSWER:l FALSElDifficulty:
1Easy
Topic: Auditing, Attest,andAssurance ServicesDefined
LearningObjective: 01-
03Understandtherelationshipsamongauditing,lattestation,andassuranceservices.
Bloom's: Understand AACS
B: Communication
AICPA: BBIndustry; FNReporting
6) Auditingisatypeofattestservice.
ANSWER:l TRUEDifficulty:
1Easy
Topic: Auditing, Attest,landAssurance ServicesDefined
LearningObjective: 01-
03Understandtherelationshipsamongauditing,lattestation,landassuranceservices.;l01-
04Knowthebasicdefinitionofafinancialstatementaudit.
Bloom's: Understand AACS
B:l Communication
AICPA: BBIndustry; FNReporting
7) Testingalltransactionsthatloccurredduringtheperiodislcostlprohibitive.
ANSWER:l TRUEDifficulty:
2 Medium Topic: TheAuditP
rocess
Learning Objective: 01-
06Beableltoexplainwhyonmostauditengagementsanauditortestslonlyasampleoftransactionsthat
occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FNDecisionMaking;BBCritical Thinking
TEST BANK For Auditing & Assurance Services: A
Systematic Approach, 12th Edition by Messier
Chapters 1 - 21 Complete
,MEDSTUDY.COM
Chapter 1: An Introductionto Assuranceand Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning,lTypesofAudit Tests,land Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidenceand Documentation
Chapter 6: Internal Controlina Financial StatementlAudit
Chapter 7: Auditing Internal Controlover Financial Reporting
Chapter 8: AuditlSampling: An Overviewand Applicationto TestsofControls
Chapter 9: AuditlSampling: An ApplicationtolSubstantive TestsloflAccount Balances
Chapter 10: Auditingthe Revenue Process
Chapter 11: Auditingthe Purchasing Process
Chapter 12: Auditingthe Human Resource Management Process
Chapter 13: Auditingthe Inventory Management Process
Chapter 14: Auditingthe Financing/Investing Process:lPrepaid Expenses, IntangiblelAssets, and Property,
Plant,land Equipment
Chapter 15: Auditingthe Financing/Investing Process:lLong-
Term Liabilities, Stockholders’ Equity, and Income Statement Accounts
Chapter 16: Auditingthe Financing/Investing Process:lCashand Investments
Chapter 17: Completingthe Audit Engagement
Chapter 18: Reportson Audited Financial Statements
Chapter 19: Professional Conduct, Independence, and Quality Management
Chapter 20: Legal Liability
,MEDSTUDY.COM
Chapter 21: Assurance, Attestation, and Internal Auditing Services
Auditing& Assurance Services: ASystematic Approach,l12e(Messier) Chapter 1 An Intr
oductionto Assuranceand Financial Statement Auditing
1) Auditingfocusesonrules,ltechniques,andcomputationslrequiredtoprepareandanalyzefinan
cialinformation.
ANSWER:l FALSElDifficulty:
1Easy
Topic: TheImportanceforStudying Auditing
Learning Objective: 01-
01Understandwhystudyingauditingcanbevaluabletoyouwhetherornotlyouplantolbecomeanaudit
or, andwhyitlisdifferentfromstudyingaccounting.
Bloom's: Remember AACSB
: Communication
AICPA: BBLegal;FNDecisionMaking
2) Decisionmakersdemandreliableinformationthatislprovidedbyaccountants.
ANSWER:l TRUEDifficulty:
1Easy
Topic: The DemandforAuditingand Assurance
Learning Objective: 01-
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa
ndauditserviceslthroughananalogytoahouseinspectorandahouseinspectionservice.
Bloom's: Understand AACS
B:l Communication
AICPA: FNDecision Making;BBIndustry
3) Informationasymmetryseldomoccurs.
ANSWER:l FALSElDifficulty:
2Medium
Topic: The DemandforAuditingand Assurance
Learning Objective: 01-
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa
ndauditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
Bloom's: Apply
AACSB: Communication
AICPA: BBIndustry; FNReporting
,MEDSTUDY.COM
4) Conflictslofinterestoftenoccurbetweenlabsenteeownerslandmanagers.
ANSWER:l TRUEDifficulty:
2Medium
Topic: The DemandforAuditingand Assurance
Learning Objective: 01-
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa
ndauditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
Bloom's: Apply
AACSB: Communication
AICPA: BBIndustry; FNReporting
5) Auditingserviceslandattestationserviceslarethelsame.
ANSWER:l FALSElDifficulty:
1Easy
Topic: Auditing, Attest,andAssurance ServicesDefined
LearningObjective: 01-
03Understandtherelationshipsamongauditing,lattestation,andassuranceservices.
Bloom's: Understand AACS
B: Communication
AICPA: BBIndustry; FNReporting
6) Auditingisatypeofattestservice.
ANSWER:l TRUEDifficulty:
1Easy
Topic: Auditing, Attest,landAssurance ServicesDefined
LearningObjective: 01-
03Understandtherelationshipsamongauditing,lattestation,landassuranceservices.;l01-
04Knowthebasicdefinitionofafinancialstatementaudit.
Bloom's: Understand AACS
B:l Communication
AICPA: BBIndustry; FNReporting
7) Testingalltransactionsthatloccurredduringtheperiodislcostlprohibitive.
ANSWER:l TRUEDifficulty:
2 Medium Topic: TheAuditP
rocess
Learning Objective: 01-
06Beableltoexplainwhyonmostauditengagementsanauditortestslonlyasampleoftransactionsthat
occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FNDecisionMaking;BBCritical Thinking
