Test Bank – Auditing: A Practical Approach, 3rd Australian Edition – Moroney, Campbell, Hamilton – ISBN 9780730326496 (All Chapters Covered 1–12)

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Auditing: A Practical
Approach, 3rd
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Australian Edition
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TEST BANK
IA
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Robyn Moroney
Fiona Campbell
PP

Jane Hamilton

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Comprehensive Test Bank for Instructors
and Students
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9780730326496

© Robyn Moroney, Fiona Campbell, & Jane Hamilton. All
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rights reserved. Reproduction or distribution without
permission is prohibited.




© MEDGEEK

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Auditing: A Practical Approach — Test Bank
Robyn Moroney, Fiona Campbell and Jane Hamilton
ISBN: 9780730326496
ST

Chapter 1: Introduction and overview of audit and assurance
Chapter 2: Ethics, legal liability and client acceptance
Chapter 3: Risk assessment I
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Chapter 4: Risk assessment II
Chapter 5: Audit evidence
Chapter 6: Gaining an understanding of the client’s system of internal controls
Chapter 7: Sampling and overview of the risk response phase of the audit
Chapter 8: Execution of the audit — testing of controls
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Chapter 9: Execution of the audit — performing substantive procedures
Chapter 10: Substantive testing and balance sheet accounts
Chapter 11: Substantive testing and income statement accounts
Chapter 12: Completing and reporting on the audit
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© MEDGEEK

, Chapter 1: Introduction and overview of audit and assurance



Chapter 1: Introduction and overview of audit and assurance

True/False

1. The nature of audit procedures refers to the reliance on evidence provided by the
client and its management.
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*a. True
b. False

Correct answer: a
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Learning Objective 1.2 ~ Discriminate between different types of assurance services


2. A compliance audit involves gathering evidence to ascertain whether the person or
entity under review has followed the rules, policies, procedures, laws and regulations
with which they must conform.
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*a. True
b. False
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Correct answer: a
Learning Objective 1.2 ~ Discriminate between different types of assurance services


3. An operational audit is an example of a compliance audit.
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a. True
*b. False

Correct answer: b
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Learning Objective 1.2 ~ Discriminate between different types of assurance services


4. The most common types of assurance engagements are financial report audits,
confirmation audits, performance audits, comprehensive audits and assurance on
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corporate social responsibility (CSR) disclosures.

a. True
*b. False
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Correct answer: b
Learning Objective 1.2 ~ Discriminate between different types of assurance services




© John Wiley & Sons Australia, Ltd 2017 1.2

, Testbank to accompany Auditing: a practical approach 3e



5. An assurance engagement is performed by an auditor or consultant to enhance the
reliability of the subject matter.

*a. True
b. False

Correct answer: a
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Learning Objective 1.2 ~ Discriminate between different types of assurance services


6. An audit of a financial report by the contracted auditors will give absolute assurance
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that the financial reports give a true and fair view of the financial performance of the
entity.

a. True
*b. False
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Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
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7. An audit engagement is performed by an Auditor to provide a reasonable assurance
that the financial report gives a true and fair view of the business activities for the
period.
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*a. True
b. False

Correct answer: a
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Learning Objective 1.3 ~ Discriminate between different levels of assurance


8. A no assurance engagement is of little use as no assurance is given to the client.

a. True
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*b. False

Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
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© John Wiley & Sons Australia, Ltd 2017 1.3