TEST BANK For Auditing & Assurance Services: A Systematic Approach, 12th Edition By William Messier Jr, Steven Glover, Verified Chapters 1 - 21, Complete Newest Version

TEST BANK For Auditing & Assurance Services:
A Systematic Approach, 12th Edition

Chapters 1 - 21 Complete

,Chapter 1: An Introduction to Assurance and Financial Statement Auditin
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g Chapter 2: The Financial Statement Auditing Environment
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Chapter 3: Audit Planning, Types of Audit Tests, and Materialit
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y Chapter 4: Risk Assessment
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Chapter 5: Evidence and Documentation
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Chapter 6: Internal Control in a Financial Statement Audit Ch
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apter 7: Auditing Internal Control over Financial Reporting
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Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls C
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hapter 9: Audit Sampling: An Application to Substantive Tests of Account Balanc
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es Chapter 10: Auditing the Revenue Process
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Chapter 11: Auditing the Purchasing Process
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Chapter 12: Auditing the Human Resource Management Proces
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s Chapter 13: Auditing the Inventory Management Process
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Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Asset
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s, and Property, Plant, and Equipment
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Chapter 15: Auditing the Financing/Investing Process: Long-
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Term Liabilities, Stockholders’ Equity, and Income Statement Accounts
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Chapter 16: Auditing the Financing/Investing Process: Cash and Investme
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nts Chapter 17: Completing the Audit Engagement
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Chapter 18: Reports on Audited Financial Statements
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Chapter 19: Professional Conduct, Independence, and Quality Management
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Chapter 20: Legal Liability
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Chapter 21: Assurance, Attestation, and Internal Auditing Services
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,Auditing & Assurance Services: A Systematic Approach, 12e (Messier)
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Chapter 1 An Introduction to Assurance and Financial Statement Auditing
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1) Auditing focuses on rules, techniques, and computations required to prepare and anal
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yze financial information.
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ANSWER: FALSE Q W



Difficulty: 1 Easy QW QW



Topic: The Importance for Studying Auditing
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Learning Objective: 01- QW Q W



01 Understand why studying auditing can be valuable to you whether or not you plan to bec
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ome an auditor, and why it is different from studying accounting.
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Bloom's: Remember AA Q W QW



CSB: Communication
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AICPA: BB Legal; FN Decision Making
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2) Decision makers demand reliable information that is provided by accountants.
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ANSWER: TRUE Q W



Difficulty: 1 Easy QW QW



Topic: The Demand for Auditing and Assurance
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Learning Objective: 01- QW Q W



02 Understand the demand for auditing and be able to explain the desired characteristics of
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auditors and audit services through an analogy to a house inspector and a house inspection
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service.
Bloom's: Understand A Q W QW



ACSB: Communication QW



AICPA: FN Decision Making; BB Industry
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3) Information asymmetry seldom occurs. QW QW QW




ANSWER: FALSE Q W



Difficulty: 2 Medium QW QW



Topic: The Demand for Auditing and Assurance
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Learning Objective: 01- QW Q W



02 Understand the demand for auditing and be able to explain the desired characteristics of
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auditors and audit services through an analogy to a house inspector and a house inspection
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service.
Bloom's: Apply Q W



AACSB: Communication Q W



AICPA: BB Industry; FN Reporting
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, 4) Conflicts of interest often occur between absentee owners and managers.
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ANSWER: TRUE Q W



Difficulty: 2 Medium QW QW



Topic: The Demand for Auditing and Assurance
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Learning Objective: 01- QW Q W



02 Understand the demand for auditing and be able to explain the desired characteristics of
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auditors and audit services through an analogy to a house inspector and a house inspection
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service.
Bloom's: Apply Q W



AACSB: Communication Q W



AICPA: BB Industry; FN Reporting
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5) Auditing services and attestation services are the same.
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ANSWER: FALSE Q W



Difficulty: 1 Easy QW QW



Topic: Auditing, Attest, and Assurance Services Defined
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Learning Objective: 01- QW Q W



03 Understand the relationships among auditing, attestation, and assurance services.
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Bloom's: Understand A Q W QW



ACSB: Communication QW



AICPA: BB Industry; FN Reporting
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6) Auditing is a type of attest service.
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ANSWER: TRUE Q W



Difficulty: 1 Easy QW QW



Topic: Auditing, Attest, and Assurance Services Defined
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Learning Objective: 01- QW Q W



03 Understand the relationships among auditing, attestation, and assurance services.; 01-
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04 Know the basic definition of a financial statement audit.
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Bloom's: Understand A Q W QW



ACSB: Communication QW



AICPA: BB Industry; FN Reporting
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7) Testing all transactions that occurred during the period is cost prohibitive.
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ANSWER: TRUE Q W



Difficulty: 2 Medium To QW QW QW



pic: The Audit Process
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Learning Objective: 01- QW Q W



06 Be able to explain why on most audit engagements an auditor tests only a sample of tran
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sactions that occurred.
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Bloom's: Apply Q W



AACSB: Communication Q W



AICPA: FN Decision Making; BB Critical Thinking
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