TEST BANK
Auditing: A Practical Approach, 4th Canadian Edition
By Robyn Moroney, Fiona Campbell
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, TABLE OF CONTENT
CHAPTER 1: Introduction and Overview of Audit and Assurance
CHAPTER 2: Ethics, Legal Liability, and Client Acceptance
CHAPTER 3: Audit Planning I
CHAPTER 4: Audit Planning II
CHAPTER 5: Audit Evidence
CHAPTER 6: Sampling and Overview of the Risk Response Phase of the Audit
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CHAPTER 7: Understanding and Testing the Client’s System of Internal Controls
CHAPTER 8: Execution of the Audit—Performing Substantive Procedures
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CHAPTER 9: Audit Data Analytics
CHAPTER 10: Auditing Sales and Receivables
CHAPTER 11: Auditing Purchases, Payables, and Payroll
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CHAPTER 12: Auditing Inventories and Property, Plant, and Equipment
CHAPTER 13: Auditing Cash and Investments
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CHAPTER 14: Completing and Reporting on the Audit
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, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Medconnoisseurlibraries.com
CHAPTER 1
INTRODUCTION AND OVERVIEW OF AUDIT AND
ASSURANCE
CHAPTER LEARNING OBJECTIVES
1. Define an assurance engagement.
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An assurance engagement involves an assurance provider arriving atan opinion about some
information being provided by their client toa third party. A financial statement audit is one
type of assuranceengagement. This engagement involves an auditor arriving at an
opinionabout the fair presentation of the financial statements. The auditreport is addressed
to the shareholders of the company being audited,but other users may read the financial
TO
statements. Learning aboutauditing and assurance requires an understanding of auditing
andassurance terminology, including terms such as audit risk, materiality,internal controls,
listed entity, and assertions.
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2. Explain why there is a demand for audit and assurance services.
Financial statement users include investors (shareholders), suppliers,customers, lenders,
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employees, governments, and the general public.These groups of users demand audited
financial statements because oftheir remoteness from the entity, accounting complexity,
theirincentivescompeting with those of the entity‘s managers, and their needfor reliable
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information on which to base decisions. The theories usedto describe the demand for audit
and assurance services are agencytheory, the information hypothesis, and the insurance
R
hypothesis.
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3. Differentiate between types of assurance services.
Assurance services include financial statement audits, complianceaudits, performance
audits, comprehensive audits, internal audits,and assurance on corporate social
responsibility (CSR) disclosures.
4. Explain the different levels of assurance.
The different levels of assurance include reasonable assurance, whichis the highest level of
assurance, limited assurance, and no assurance.Reasonable assurance is provided on an
audit of a company‘sfinancial statements. Limited assurance is provided in a review of
acompany‘s financial Dsotwante
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, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Medconnoisseurlibraries.com
5. Outline different audit opinions
An auditor can issue an unmodified opinion, also known as a cleanreport, or an unmodified
opinion with an emphasis of matter paragraph.Alternatively, a modified opinion may be
issued as a qualified, anadverse, or a disclaimer of opinion.
6. Differentiate between the roles of the preparer and the auditor, and discuss the
different firms that provide assurance services.
It is the responsibility of a company‘s governing body to ensure thatits financial statements
are relevant, reliable, comparable, understandable,and true and fair. It is the responsibility of
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the auditor to form anopinion on the fair presentation of the financial statements. In doing,so
1- 2 Auditing: A Practical Approach, Fourth Canadian Edition
the auditor must maintain professional scepticism and utilize professionaljudgement and due
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care.
The firms that provide assurance services include the Big-4international firms, the national
firms (with international links),local and regional firms, and consulting firms that tend to
specializein assurance of CSR and environmental disclosures.
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7. Identify the different regulators, legislation, and regulations surrounding the
assurance process.
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Introduction and Overview of Audit and Assurance 1-3
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Auditing: A Practical Approach, 4th Canadian Edition
By Robyn Moroney, Fiona Campbell
TU
TO
R
G
U
R
U
, TABLE OF CONTENT
CHAPTER 1: Introduction and Overview of Audit and Assurance
CHAPTER 2: Ethics, Legal Liability, and Client Acceptance
CHAPTER 3: Audit Planning I
CHAPTER 4: Audit Planning II
CHAPTER 5: Audit Evidence
CHAPTER 6: Sampling and Overview of the Risk Response Phase of the Audit
TU
CHAPTER 7: Understanding and Testing the Client’s System of Internal Controls
CHAPTER 8: Execution of the Audit—Performing Substantive Procedures
TO
CHAPTER 9: Audit Data Analytics
CHAPTER 10: Auditing Sales and Receivables
CHAPTER 11: Auditing Purchases, Payables, and Payroll
R
CHAPTER 12: Auditing Inventories and Property, Plant, and Equipment
CHAPTER 13: Auditing Cash and Investments
G
CHAPTER 14: Completing and Reporting on the Audit
U
R
U
, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Medconnoisseurlibraries.com
CHAPTER 1
INTRODUCTION AND OVERVIEW OF AUDIT AND
ASSURANCE
CHAPTER LEARNING OBJECTIVES
1. Define an assurance engagement.
TU
An assurance engagement involves an assurance provider arriving atan opinion about some
information being provided by their client toa third party. A financial statement audit is one
type of assuranceengagement. This engagement involves an auditor arriving at an
opinionabout the fair presentation of the financial statements. The auditreport is addressed
to the shareholders of the company being audited,but other users may read the financial
TO
statements. Learning aboutauditing and assurance requires an understanding of auditing
andassurance terminology, including terms such as audit risk, materiality,internal controls,
listed entity, and assertions.
R
2. Explain why there is a demand for audit and assurance services.
Financial statement users include investors (shareholders), suppliers,customers, lenders,
G
employees, governments, and the general public.These groups of users demand audited
financial statements because oftheir remoteness from the entity, accounting complexity,
theirincentivescompeting with those of the entity‘s managers, and their needfor reliable
U
information on which to base decisions. The theories usedto describe the demand for audit
and assurance services are agencytheory, the information hypothesis, and the insurance
R
hypothesis.
U
3. Differentiate between types of assurance services.
Assurance services include financial statement audits, complianceaudits, performance
audits, comprehensive audits, internal audits,and assurance on corporate social
responsibility (CSR) disclosures.
4. Explain the different levels of assurance.
The different levels of assurance include reasonable assurance, whichis the highest level of
assurance, limited assurance, and no assurance.Reasonable assurance is provided on an
audit of a company‘sfinancial statements. Limited assurance is provided in a review of
acompany‘s financial Dsotwante
lomde
ednbts
y:.BN
aDownloadedRo aTsEdestine465
IGH
by: sRuSranDcIeES|
TU | jproohvriadbehd
am in70a@cgm
asa omail.p
coilm
ationengagem eannttt.Page
WWant otoearn
1$1.236
of 861
earn$1.236
Distribution of this document is illegal extra per year?
pePr a
ye
A+ gaer?
2
, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Medconnoisseurlibraries.com
5. Outline different audit opinions
An auditor can issue an unmodified opinion, also known as a cleanreport, or an unmodified
opinion with an emphasis of matter paragraph.Alternatively, a modified opinion may be
issued as a qualified, anadverse, or a disclaimer of opinion.
6. Differentiate between the roles of the preparer and the auditor, and discuss the
different firms that provide assurance services.
It is the responsibility of a company‘s governing body to ensure thatits financial statements
are relevant, reliable, comparable, understandable,and true and fair. It is the responsibility of
TU
the auditor to form anopinion on the fair presentation of the financial statements. In doing,so
1- 2 Auditing: A Practical Approach, Fourth Canadian Edition
the auditor must maintain professional scepticism and utilize professionaljudgement and due
TO
care.
The firms that provide assurance services include the Big-4international firms, the national
firms (with international links),local and regional firms, and consulting firms that tend to
specializein assurance of CSR and environmental disclosures.
R
G
7. Identify the different regulators, legislation, and regulations surrounding the
assurance process.
lOM oAR c P S D | 30878 49 5
U
R
Introduction and Overview of Audit and Assurance 1-3
U
Downloaded by: BRIGHTERSTUDIES
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