TEST BANK For Auditing & Assurance Services: A
Systematic Approach, 12th Edition
Chapters 1 - 21 Complete
,Chapter6n1:6nAn6nIntroduction6nto6nAssurance6nand6nFinancial6nStatement6nAuditin
g6nChapter6n2:6nThe6nFinancial6nStatement6nAuditing6nEnvironment
Chapter6n3:6nAudit6nPlanning,6nTypes6nof6nAudittTests,6nand6nMateria
lity6nChapter6n4:6nRisk6nAssessment
Chapter6n5:6nEvidencetand6nDocumentation
Chapter6n6:6nInternal6nControl6nin6natFinancial6nStatementtAudit6n
Chapter6n7:6nAuditing6nInternal6nControl6nover6nFinancial6nReportin
g
Chapter6n8:6nAudit6nSampling:6nAn6nOverview6nand6nApplication6nto6nTests6nof6nContro
ls6nChapter6n9:6nAudit6nSampling:6nAn6nApplication6nto6nSubstantive6nTests6nof6nAccountt
Balances6nChapter6n10:6nAuditing6nthe6nRevenue6nProcess
Chapter6n11:6nAuditing6nthe6nPurchasing6nProcess
Chapter6n12:6nAuditing6nthe6nHuman6nResource6nManagement6nPro
cess6nChapter6n13:6nAuditing6nthe6nInventory6nManagement6nProc
ess
Chapter6n14:6nAuditing6nthe6nFinancing/Investing6nProcess:6nPrepaid6nExpenses,6nIntangible6nAsse
ts,6nand6nProperty,6nPlant,6nand6nEquipment
Chapter6n15:6nAuditing6nthe6nFinancing/Investing6nProcess:6nLong-
Term6nLiabilities,6nStockholders’6nEquity,6nand6nIncome6nStatementtAccounts6n
Chapter6n16:6nAuditing6nthe6nFinancing/Investing6nProcess:6nCash6nand6nInvestm
ents6nChapter6n17:6nCompletingtthe6nAudittEngagement
Chapter6n18:6nReports6non6nAudited6nFinancial6nStatements
Chapter6n19:6nProfessional6nConduct,6nIndependence,6nand6nQuality6nManagemen
t6nChapter6n20:6nLegal6nLiability
Chapter6n21:6nAssurance,6nAttestation,6nand6nInternal6nAuditing6nServices
,Auditing&6nAssurancetServices:6nASystematic6nApproach,6n12et(Messier)6nChapter
6n16nAn6nIntroduction6nto6nAssuranceand6nFinancial6nStatementtAuditing
1) Auditingtfocusesonrules,6ntechniques,6nandcomputationsrequiredtoprepareandanalyzefin6n
ancial6ninformation.
ANSWER:6nFALSE6nDiffic
ulty:1Easy
Topic:6nThe6nImportancefor6nStudying6nAuditing6n
Learning6nObjective:6n01-
016nUnderstandwhystudyingauditing6ncantbevaluablettoyoutwhetherornottyouplantotbecome6nanaud6ni
tor,tandtwhy6nittis6ndifferenttfrom6nstudyingaccounting.
Bloom's:6nRemember6nAA
C6nSB:6nCommunication
AICPA:6 n BBLegal;6nFNDecision6nMaking
2) Decisiontmakersdemandtreliableinformationthatisprovidedbyaccountants.
ANSWER:6nTRUEDifficu
6nlty:1Easy
Topic:6 n The6nDemandfor6nAuditingand6nAssuranc
e6nLearning6nObjective:6n01-
026nUnderstand6nthetdemandforauditing6nandbeabletoexplaintthetdesiredtcharacteristicsofauditorsta6nndauditservi
throughtananalogytoahousetinspectorandahousetinspection6nservice.
Bloom's:6nUnderstand6nAA6
nCSB:6nCommunication
AICPA:6 n FNDecisiontMaking;6nBBIndustry
3) Informationasymmetryseldomtoccurs.
ANSWER:6nFALSE6nDiffic
ulty:2tMedium
Topic:6nThe6nDemandfor6nAuditingtand6nAssuranc
e6nLearning6nObjective:6n01-
026nUnderstand6nthetdemandforauditing6nandbeabletoexplain6nthetdesiredcharacteristicsofauditorsta6nndauditserv
sthroughtananalogytoathousetinspectorandtahousetinspection6nservice.
Bloom's:6 n Apply
AACSB:6 n Communication
AICPA:6 n BBIndustry;6nFNReporting
, 4) Conflictsofinterestoftenoccurbetweenabsenteeownersandmanagers.
ANSWER:6nTRUEDifficu
6nlty:2Medium
Topic:6nThe6nDemandfor6nAuditingtand6nAssuranc
e6nLearning6nObjective:6n01-
026nUnderstandtthetdemandforauditing6nandbeabletoexplaintthetdesiredtcharacteristicsofauditorsta6nndauditservic
hroughtananalogytoathousetinspectorandtahousetinspection6nservice.
Bloom's:6 n Apply
AACSB:6 n Communication
AICPA:6 n BBIndustry;6nFNReporting
5) Auditingtservicesandattestationtservicesarethesame.
ANSWER:6nFALSE6nDiffic
ulty:1Easy
Topic:6 n Auditing,6nAttest,6nandtAssurancetServices6nDefined6nLe
arning6nObjective:6n01-
036nUnderstandtherelationshipsamongtauditing,6nattestation,6nandassuranceservices.
6nBloom's:6nUnderstand6nAA
CSB:6nCommunication
AICPA:6 n BBIndustry;6nFNReporting
6) Auditingtisattypetofattesttservice.
ANSWER:6nTRUEDifficu
6nlty:1Easy
Topic:6 n Auditing,6nAttest,6nandtAssurancetServices6nDefined6nLe
arning6nObjective:6n01-
036nUnderstandtherelationshipsamongtauditing,6nattestation,6nandassuranceservices.;6n01-
6n046nKnowthebasicdefinitionofafinancial6nstatement6naudit.
Bloom's:6nUnderstandtAA6
nCSB:6nCommunication
AICPA:6 n BBIndustry;6nFNReporting
7) Testingalltransactionstthatoccurredduringtthetperiodiscostprohibitive.
ANSWER:6nTRUEDiffic
u6nlty:6n26nMediumtTopic:6n
The6nAuditProcess6 n 6 n 6
n Learning6nObjective:6n01
-
066 n Betablettoexplainwhyonmostaudittengagementsanauditortests6 n onlyasampletoftransactionst
ha6 n t6noccurred.
Bloom's:6 n Apply
AACSB:6 n Communication
AICPA:6 n FNDecision6nMaking;6nBBCritical6nThinking
Systematic Approach, 12th Edition
Chapters 1 - 21 Complete
,Chapter6n1:6nAn6nIntroduction6nto6nAssurance6nand6nFinancial6nStatement6nAuditin
g6nChapter6n2:6nThe6nFinancial6nStatement6nAuditing6nEnvironment
Chapter6n3:6nAudit6nPlanning,6nTypes6nof6nAudittTests,6nand6nMateria
lity6nChapter6n4:6nRisk6nAssessment
Chapter6n5:6nEvidencetand6nDocumentation
Chapter6n6:6nInternal6nControl6nin6natFinancial6nStatementtAudit6n
Chapter6n7:6nAuditing6nInternal6nControl6nover6nFinancial6nReportin
g
Chapter6n8:6nAudit6nSampling:6nAn6nOverview6nand6nApplication6nto6nTests6nof6nContro
ls6nChapter6n9:6nAudit6nSampling:6nAn6nApplication6nto6nSubstantive6nTests6nof6nAccountt
Balances6nChapter6n10:6nAuditing6nthe6nRevenue6nProcess
Chapter6n11:6nAuditing6nthe6nPurchasing6nProcess
Chapter6n12:6nAuditing6nthe6nHuman6nResource6nManagement6nPro
cess6nChapter6n13:6nAuditing6nthe6nInventory6nManagement6nProc
ess
Chapter6n14:6nAuditing6nthe6nFinancing/Investing6nProcess:6nPrepaid6nExpenses,6nIntangible6nAsse
ts,6nand6nProperty,6nPlant,6nand6nEquipment
Chapter6n15:6nAuditing6nthe6nFinancing/Investing6nProcess:6nLong-
Term6nLiabilities,6nStockholders’6nEquity,6nand6nIncome6nStatementtAccounts6n
Chapter6n16:6nAuditing6nthe6nFinancing/Investing6nProcess:6nCash6nand6nInvestm
ents6nChapter6n17:6nCompletingtthe6nAudittEngagement
Chapter6n18:6nReports6non6nAudited6nFinancial6nStatements
Chapter6n19:6nProfessional6nConduct,6nIndependence,6nand6nQuality6nManagemen
t6nChapter6n20:6nLegal6nLiability
Chapter6n21:6nAssurance,6nAttestation,6nand6nInternal6nAuditing6nServices
,Auditing&6nAssurancetServices:6nASystematic6nApproach,6n12et(Messier)6nChapter
6n16nAn6nIntroduction6nto6nAssuranceand6nFinancial6nStatementtAuditing
1) Auditingtfocusesonrules,6ntechniques,6nandcomputationsrequiredtoprepareandanalyzefin6n
ancial6ninformation.
ANSWER:6nFALSE6nDiffic
ulty:1Easy
Topic:6nThe6nImportancefor6nStudying6nAuditing6n
Learning6nObjective:6n01-
016nUnderstandwhystudyingauditing6ncantbevaluablettoyoutwhetherornottyouplantotbecome6nanaud6ni
tor,tandtwhy6nittis6ndifferenttfrom6nstudyingaccounting.
Bloom's:6nRemember6nAA
C6nSB:6nCommunication
AICPA:6 n BBLegal;6nFNDecision6nMaking
2) Decisiontmakersdemandtreliableinformationthatisprovidedbyaccountants.
ANSWER:6nTRUEDifficu
6nlty:1Easy
Topic:6 n The6nDemandfor6nAuditingand6nAssuranc
e6nLearning6nObjective:6n01-
026nUnderstand6nthetdemandforauditing6nandbeabletoexplaintthetdesiredtcharacteristicsofauditorsta6nndauditservi
throughtananalogytoahousetinspectorandahousetinspection6nservice.
Bloom's:6nUnderstand6nAA6
nCSB:6nCommunication
AICPA:6 n FNDecisiontMaking;6nBBIndustry
3) Informationasymmetryseldomtoccurs.
ANSWER:6nFALSE6nDiffic
ulty:2tMedium
Topic:6nThe6nDemandfor6nAuditingtand6nAssuranc
e6nLearning6nObjective:6n01-
026nUnderstand6nthetdemandforauditing6nandbeabletoexplain6nthetdesiredcharacteristicsofauditorsta6nndauditserv
sthroughtananalogytoathousetinspectorandtahousetinspection6nservice.
Bloom's:6 n Apply
AACSB:6 n Communication
AICPA:6 n BBIndustry;6nFNReporting
, 4) Conflictsofinterestoftenoccurbetweenabsenteeownersandmanagers.
ANSWER:6nTRUEDifficu
6nlty:2Medium
Topic:6nThe6nDemandfor6nAuditingtand6nAssuranc
e6nLearning6nObjective:6n01-
026nUnderstandtthetdemandforauditing6nandbeabletoexplaintthetdesiredtcharacteristicsofauditorsta6nndauditservic
hroughtananalogytoathousetinspectorandtahousetinspection6nservice.
Bloom's:6 n Apply
AACSB:6 n Communication
AICPA:6 n BBIndustry;6nFNReporting
5) Auditingtservicesandattestationtservicesarethesame.
ANSWER:6nFALSE6nDiffic
ulty:1Easy
Topic:6 n Auditing,6nAttest,6nandtAssurancetServices6nDefined6nLe
arning6nObjective:6n01-
036nUnderstandtherelationshipsamongtauditing,6nattestation,6nandassuranceservices.
6nBloom's:6nUnderstand6nAA
CSB:6nCommunication
AICPA:6 n BBIndustry;6nFNReporting
6) Auditingtisattypetofattesttservice.
ANSWER:6nTRUEDifficu
6nlty:1Easy
Topic:6 n Auditing,6nAttest,6nandtAssurancetServices6nDefined6nLe
arning6nObjective:6n01-
036nUnderstandtherelationshipsamongtauditing,6nattestation,6nandassuranceservices.;6n01-
6n046nKnowthebasicdefinitionofafinancial6nstatement6naudit.
Bloom's:6nUnderstandtAA6
nCSB:6nCommunication
AICPA:6 n BBIndustry;6nFNReporting
7) Testingalltransactionstthatoccurredduringtthetperiodiscostprohibitive.
ANSWER:6nTRUEDiffic
u6nlty:6n26nMediumtTopic:6n
The6nAuditProcess6 n 6 n 6
n Learning6nObjective:6n01
-
066 n Betablettoexplainwhyonmostaudittengagementsanauditortests6 n onlyasampletoftransactionst
ha6 n t6noccurred.
Bloom's:6 n Apply
AACSB:6 n Communication
AICPA:6 n FNDecision6nMaking;6nBBCritical6nThinking
