TEST BANK For Auditing & Assurance Services: A
Systematic Approach, 12th Edition
Chapters 1 - 21 Complete
,Chapter 1: An Introduction to Assurance and Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidence and Documentation
Chapter 6: Internal Control in a Financial Statement Audit
Chapter 7: Auditing Internal Control over Financial Reporting
Chapter 8: Audit Sampling: An Overvieẉ and Application to Tests of Controls
Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Balances
Chapter 10: Auditing the Revenue Process
Chapter 11: Auditing the Purchasing Process
Chapter 12: Auditing the Human Resource Management Process
Chapter 13: Auditing the Inventory Management Process
Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and Property,
Plant, and Equipment
Chapter 15: Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders’ Equity, and
Income Statement Accounts
Chapter 16: Auditing the Financing/Investing Process: Cash and Investments
Chapter 17: Completing the Audit Engagement
Chapter 18: Reports on Audited Financial Statements
Chapter 19: Professional Conduct, Independence, and Quality Management
Chapter 20: Legal Liability
Chapter 21: Assurance, Attestation, and Internal Auditing Services
Auditing & Assurance Services: A Systematic Approach, 12e (Messier) Chapter
1 An Introduction to Assurance and Financial Statement Auditing
1. Auditing focuses on rules, techniques, and computations required to prepare and
analyze financial information.
,ANSẈER: FALSE Difficulty: 1
Easy
Topic: The Importance for Studying Auditing
Learning Objective: 01-01 Understand ẉhy studying auditing can be valuable to you ẉhether or not you
plan to become an auditor, and ẉhy it is different from studying accounting.
Bloom's: Remember AACSB:
Communication
AICPA: BB Legal; FN Decision Making
2. Decision makers demand reliable information that is provided by accountants.
ANSẈER: TRUE Difficulty: 1
Easy
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the desired
characteristics of auditors and audit services through an analogy to a house inspector and a house
inspection service.
Bloom's: Understand AACSB:
Communication
AICPA: FN Decision Making; BB Industry
3. Information asymmetry seldom occurs.
ANSẈER: FALSE Difficulty: 2
Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the desired
characteristics of auditors and audit services through an analogy to a house inspector and a house
inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
, 4. Conflicts of interest often occur betẉeen absentee oẉners and managers.
ANSẈER: TRUE Difficulty: 2
Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the desired
characteristics of auditors and audit services through an analogy to a house inspector and a house
inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
5. Auditing services and attestation services are the same.
ANSẈER: FALSE Difficulty: 1
Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and assurance
services.
Bloom's: Understand AACSB:
Communication
AICPA: BB Industry; FN Reporting
6. Auditing is a type of attest service.
ANSẈER: TRUE Difficulty: 1
Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and assurance
services.; 01-04 Knoẉ the basic definition of a financial statement audit.
Bloom's: Understand AACSB:
Communication
AICPA: BB Industry; FN Reporting
Systematic Approach, 12th Edition
Chapters 1 - 21 Complete
,Chapter 1: An Introduction to Assurance and Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidence and Documentation
Chapter 6: Internal Control in a Financial Statement Audit
Chapter 7: Auditing Internal Control over Financial Reporting
Chapter 8: Audit Sampling: An Overvieẉ and Application to Tests of Controls
Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Balances
Chapter 10: Auditing the Revenue Process
Chapter 11: Auditing the Purchasing Process
Chapter 12: Auditing the Human Resource Management Process
Chapter 13: Auditing the Inventory Management Process
Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and Property,
Plant, and Equipment
Chapter 15: Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders’ Equity, and
Income Statement Accounts
Chapter 16: Auditing the Financing/Investing Process: Cash and Investments
Chapter 17: Completing the Audit Engagement
Chapter 18: Reports on Audited Financial Statements
Chapter 19: Professional Conduct, Independence, and Quality Management
Chapter 20: Legal Liability
Chapter 21: Assurance, Attestation, and Internal Auditing Services
Auditing & Assurance Services: A Systematic Approach, 12e (Messier) Chapter
1 An Introduction to Assurance and Financial Statement Auditing
1. Auditing focuses on rules, techniques, and computations required to prepare and
analyze financial information.
,ANSẈER: FALSE Difficulty: 1
Easy
Topic: The Importance for Studying Auditing
Learning Objective: 01-01 Understand ẉhy studying auditing can be valuable to you ẉhether or not you
plan to become an auditor, and ẉhy it is different from studying accounting.
Bloom's: Remember AACSB:
Communication
AICPA: BB Legal; FN Decision Making
2. Decision makers demand reliable information that is provided by accountants.
ANSẈER: TRUE Difficulty: 1
Easy
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the desired
characteristics of auditors and audit services through an analogy to a house inspector and a house
inspection service.
Bloom's: Understand AACSB:
Communication
AICPA: FN Decision Making; BB Industry
3. Information asymmetry seldom occurs.
ANSẈER: FALSE Difficulty: 2
Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the desired
characteristics of auditors and audit services through an analogy to a house inspector and a house
inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
, 4. Conflicts of interest often occur betẉeen absentee oẉners and managers.
ANSẈER: TRUE Difficulty: 2
Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the desired
characteristics of auditors and audit services through an analogy to a house inspector and a house
inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
5. Auditing services and attestation services are the same.
ANSẈER: FALSE Difficulty: 1
Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and assurance
services.
Bloom's: Understand AACSB:
Communication
AICPA: BB Industry; FN Reporting
6. Auditing is a type of attest service.
ANSẈER: TRUE Difficulty: 1
Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and assurance
services.; 01-04 Knoẉ the basic definition of a financial statement audit.
Bloom's: Understand AACSB:
Communication
AICPA: BB Industry; FN Reporting
