Test Bank for Auditing & Assurance Services A Systematic Approach 12th Edition by William Messier Jr, Steven Glover, Douglas Prawit

TEST BANK FOR
vc vc


Auditingvc&vcAssurancevcServicesvcAvcSystematicvcApproachvc12evcMess
iervcChaptervc1-21 AnswersvcarevcatvcthevcEndvcofvcEachvcChapter


Chaptervc1
Studentvcname:
1) Whyvcdovcauditorsvcoftenvcusevcavcsamplingvcapproachvctovcevidencevcgathering?
1)vc

A) Auditorsvcarevcexpertsvcandvcdovcnotvcneedvctovclookvcatvcmuchvctovcknowvcwhethervcthevcf
inancialvcstatementsvcarevccorrectvcorvcnot.
B) Auditorsvcmustvcbalancevcthevccostvcofvcthevcauditvcwithvcthevcneedvcforvcprecisionvcandvcforvcsomevc
typesvcofvcevidence,vccomputervcdatavcanalyticvcapproachesvccan’tvcbevcused.
C) Auditorsvcmustvclimitvctheirvcexposurevctovctheirvcauditeevctovcmaintainvcindependence.
D) Thevcauditor'svcrelationshipvcwithvcthevcauditeevcisvcgenerallyvcadversarial,vcsovcthevcauditorvcw
illvcnotvchavevcaccessvctovcallvcofvcthevcfinancialvcinformationvcofvcthevccompany.



QuestionvcDetails
AACSBvc:v c Communicationvc
AICPAvc:vcFNvcDecisionvcMaki
ng
Accessibilityvc:vcKeyboardvcNavigationvcDif
ficultyvc:vc1vcEasy
AICPAvc:vcBBvcIndustryv
cBloom'svc:vcUnderstand

LearningvcObjectivevc:vc01-
05vcUnderstandvcwhyvcsamplingvcisvcimportantvcinvcanvcaudit.vcGradablevc:vcautomatic
Accessibilityvc:vcScreenvcReadervcCompatibl
evcTopicvc:vcThevcAuditvcProcess



2) Whichvcofvcthevcfollowingvcstatementsvcbestvcdescribesvcavcrelationshipvcbetweenvcsamplevcsiz
evcandvcothervcelementsvcofvcauditing?
2)vc

, A) Ifvcmaterialityvcincreases,vcsovcwillvcthevcsamplevcsize.
B) Ifvcthevcdesiredvclevelvcofvcassurancevcincreases,vcsamplevcsizesvccanvcbevcsmaller.
C) Ifvcmaterialityvcdecreases,vcsamplevcsizevcwillvcneedvctovcincrease.
D) Therevcisvcnovcrelationshipvcbetweenvcsamplevcsizevcandvcmaterialityvcorvcthevcdesiredvcle
velvcofvcassurance.



QuestionvcDetails
Accessibilityvc:vcKeyboardvcNavigationvcBlo
om'svc:vcApply
Difficultyvc:vc2vcMedium
AICPAvc:vcBBvcCriticalvcThinki
ngvcAACSBvc:v c AnalyticalvcTh
inkingvcAICPAvc:vcFNvcRiskvc
Analysis
LearningvcObjectivevc:vc01-
05vcUnderstandvcwhyvcsamplingvcisvcimportantvcinvcanvcaudit.vcGradablevc:vcautomatic
Accessibilityvc:vcScreenvcReadervcCompatibl
evcTopicvc:vcThevcAuditvcProcess




3) WhichvcofvcthevcfollowingvcstatementsvcaboutvcthevcstudyvcofvcauditingvcisvcNOTvctrue?
3)vc


A) Thevcstudyvcofvcauditingvccanvcbevcvaluablevctovcfuturevcaccountantsvcandvcbusinessvcdecisionvc
makersvcwhethervcorvcnotvctheyvcplanvctovcbecomevcauditors.
B) Thevcstudyvcofvcauditingvcfocusesvconvclearningvcthevcanalyticalvcandvclogicalvcskillsvcnecess
aryvctovcevaluatevcthevcrelevancevcandvcreliabilityvcofvcinformation.
C) Thevcstudyvcofvcauditingvcfocusesvconvclearningvcthevcrules,vctechniques,vcandvccomputationsvcrequ
iredvctovcanalyzevcfinancialvcstatementsvcforvcmakingvcinvestmentvcrecommendations.
D) Thevcstudyvcofvcauditingvcbeginsvcwithvcthevcunderstandingvcofvcavccoherentvclogicalvcframewo
rkvcandvctechniquesvcusefulvcforvcgatheringvcandvcanalyzingvcevidencevcaboutvcothers’vcassertions
.

, QuestionvcDetails
AACSBvc:v c Communicationvc
AICPAvc:vcFNvcDecisionvcMaki
ng
Accessibilityvc:vcKeyboardvcNavigation
LearningvcObjectivevc:vc01-
01vcUnderstandvcwhyvcstudyingvcauditingvccanvcbevcvaluablevctovcyouvcwhethervcorvcnotvcyouvcAICPAvc:vcB
BvcIndustry
Difficultyvc:vc2vcMedium
vcBloom'svc:vcAnalyzevc

Gradablevc:vcautomatic
Accessibilityvc:vcScreenvcReadervcCompatiblevc
Topicvc:vcThevcImportancevcforvcStudyingvcAudit
ing




4) Thevcbasicvcdefinitionvcofvcauditingvcessentiallyvcindicatesvcthat,vcoverall,vcauditingvcisvcavcprocessv
cto:

4)vc


A) detectvcfraud.
B) examinevcindividualvctransactionsvcsovcthatvcthevcauditorvcmayvccertifyvcasvctovctheirvcvalidity.
C) objectivelyvcobtainvcandvcevaluatevcevidencevcregardingvcassertionsvcmadevcbyvcanothervcparty.
D) assurevcthevcconsistentvcapplicationvcofvccorrectvcaccountingvcprocedures.



QuestionvcDetails
AACSBvc:v c CommunicationvcAcces
sibilityvc:vcKeyboardvcNavigationvcBl
oom'svc:vcRemember
Difficultyvc:vc1vcEasyvc
AICPAvc:vcFNvcReportin
g
LearningvcObjectivevc:vc01-
03vcKnowvcthevcbasicvcdefinitionvcofvcavcfinancialvcstatementvcaudit.vcAICPAvc:vcBBvc
CriticalvcThinking
Gradablevc:vcautomatic
Accessibilityvc:vcScreenvcReadervcCompatible
Topicvc:vcAuditing,vcAttest,vcandvcAssurancevcServicesvcDefined




5) Assurancevcservicesvcmayvcimprovevcallvcofvcthevcfollowingvcexcept:
5)vc

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



QuestionvcDetails
AACSBvc:v c CommunicationvcAcces
sibilityvc:vcKeyboardvcNavigationvcBl
oom'svc:vcRemember
Difficultyvc:vc1vcEasyvc
AICPAvc:vcBBvcIndustr
yvcAICPAvc:vcFNvcRepor
ting
LearningvcObjectivevc:vc01-
03vcKnowvcthevcbasicvcdefinitionvcofvcavcfinancialvcstatementvcaudit.vcGradablevc:vcauto
matic
Accessibilityvc:vcScreenvcReadervcCompatible
Topicvc:vcAuditing,vcAttest,vcandvcAssurancevcServicesvcDefined




6) Evidencevcisvcreliablevcifvcit:
6)vc


A) signalsvcthevctruevcstatevcofvcavcmanagementvcassertion.
B) appliesvctovcthevcperiodvcbeingvcaudited.
C) relatesvctovcthevcauditvcassertionvcbeingvctested.
D) isvcsufficientvctovcjustifyvcavcconclusion.



QuestionvcDetails
Accessibilityvc:vcKeyboardvcNavigationvcDif
ficultyvc:vc1vcEasy
Bloom'svc:vcUnderstand
LearningvcObjectivevc:vc01-
04vcUnderstandvcthevcfundamentalvcconceptsvcthatvcunderlievcfinancialvcstatementvcaudivcAICPAvc:vcBBvcCri
ticalvcThinking
AACSBvc:v c AnalyticalvcThinki
ngvcAICPAvc:vcFNvcMeasurem
ent
Topicvc:vcFundamentalvcConceptsvcinvcConductingvcavcFinancialvcStatementvcAu
ditvcGradablevc:vcautomatic
Accessibilityvc:vcScreenvcReadervcCompatible