TEST BANK FOR bh bh
Auditing & Assurance Services A Systematic Approach 12e Messie
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r Chapter 1-21 Answers are at the End of Each Chapter
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Chapter 1 bh
Student name: bh
1) Why do auditors often use a sampling approach to evidence gathering?
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1)bh
A) Auditors are experts and do not need to look at much to know whether the financ
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ial statements are correct or not.
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B) Auditors must balance the cost of the audit with the need for precision and for some types
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hof evidence, computer data analytic approaches can’t be used.
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C) Auditors must limit their exposure to their auditee to maintain independence.
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D) The auditor's relationship with the auditee is generally adversarial, so the auditor will n
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ot have access to all of the financial information of the company.
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Question Details bh
AACSB : Communication Abh b h bh
ICPA : FN Decision Making
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Accessibility : Keyboard Navigation Diffi
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culty : 1 Easybh bh bh
AICPA : BB Industry
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Bloom's : Understand bh bh
Learning Objective : 01-bh bh bh
05 Understand why sampling is important in an audit. Gradable : automatic
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Accessibility : Screen Reader Compatible
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Topic : The Audit Process
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2) Which of the following statements best describes a relationship between sample size a
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nd other elements of auditing?
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2) bh
, A) If materiality increases, so will the sample size.
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B) If the desired level of assurance increases, sample sizes can be smaller.
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C) If materiality decreases, sample size will need to increase.
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D) There is no relationship between sample size and materiality or the desired level
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of assurance.
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Question Details bh
Accessibility : Keyboard Navigation Bloo
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m's : Applybh bh
Difficulty : 2 Medium bh bh bh
AICPA : BB Critical Thinkin
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g AACSB : Analytical Think
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ing AICPA : FN Risk Analy
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sis
Learning Objective : 01-
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05 Understand why sampling is important in an audit. Gradable : automatic
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Accessibility : Screen Reader Compatible
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Topic : The Audit Process
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3) Which of the following statements about the study of auditing is NOT true?
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3) bh
A) The study of auditing can be valuable to future accountants and business decision make
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rs whether or not they plan to become auditors.
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B) The study of auditing focuses on learning the analytical and logical skills necessary
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to evaluate the relevance and reliability of information.
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C) The study of auditing focuses on learning the rules, techniques, and computations required
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to analyze financial statements for making investment recommendations.
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D) The study of auditing begins with the understanding of a coherent logical framework a
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nd techniques useful for gathering and analyzing evidence about others’ assertions.
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, Question Details bh
AACSB : Communication A
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ICPA : FN Decision Making
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Accessibility : Keyboard Navigation bh bh bh
Learning Objective : 01-
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01 Understand why studying auditing can be valuable to you whether or not you AICPA : BB Indu
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stry
Difficulty : 2 Medium bh bh bh bh
Bloom's : Analyze Gra bh bh bh
dable : automatic
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Accessibility : Screen Reader Compatible To
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pic : The Importance for Studying Auditing
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4) The basic definition of auditing essentially indicates that, overall, auditing is a process to:
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4) bh
A) detect fraud. bh
B) examine individual transactions so that the auditor may certify as to their validity.
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C) objectively obtain and evaluate evidence regarding assertions made by another party.
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D) assure the consistent application of correct accounting procedures.
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Question Details bh
AACSB : Communication Access
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ibility : Keyboard Navigation Bloo
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m's : Remember
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Difficulty : 1 Easy AI bh bh bh bh
CPA : FN Reporting
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Learning Objective : 01-
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03 Know the basic definition of a financial statement audit. AICPA : BB Critic
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al Thinking
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Gradable : automatic bh bh
Accessibility : Screen Reader Compatible
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Topic : Auditing, Attest, and Assurance Services Defined
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5) Assurance services may improve all of the following except:
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5)
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, A) relevance.
B) credibility.
C) periodicity.
D) reliability.
Question Details bh
AACSB : Communication Access
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ibility : Keyboard Navigation Bloo
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m's : Remember
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Difficulty : 1 Easy AI bh bh bh bh
CPA : BB Industry AI
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CPA : FN Reporting
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Learning Objective : 01-
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03 Know the basic definition of a financial statement audit. Gradable : automati
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c
Accessibility : Screen Reader Compatible
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Topic : Auditing, Attest, and Assurance Services Defined
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6) Evidence is reliable if it: bh bh bh bh
6) bh
A) signals the true state of a management assertion.
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B) applies to the period being audited. bh bh bh bh bh
C) relates to the audit assertion being tested.
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D) is sufficient to justify a conclusion.
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Question Details bh
Accessibility : Keyboard Navigation Diffi
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culty : 1 Easy
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Bloom's : Understand bh bh
Learning Objective : 01-
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04 Understand the fundamental concepts that underlie financial statement audi AICPA : BB Critical
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Thinking
AACSB : Analytical Thinkin
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g AICPA : FN Measurement
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Topic : Fundamental Concepts in Conducting a Financial Statement Audit
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Gradable : automatic bh bh
Accessibility : Screen Reader Compatible
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Auditing & Assurance Services A Systematic Approach 12e Messie
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r Chapter 1-21 Answers are at the End of Each Chapter
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Chapter 1 bh
Student name: bh
1) Why do auditors often use a sampling approach to evidence gathering?
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1)bh
A) Auditors are experts and do not need to look at much to know whether the financ
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ial statements are correct or not.
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B) Auditors must balance the cost of the audit with the need for precision and for some types
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hof evidence, computer data analytic approaches can’t be used.
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C) Auditors must limit their exposure to their auditee to maintain independence.
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D) The auditor's relationship with the auditee is generally adversarial, so the auditor will n
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ot have access to all of the financial information of the company.
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Question Details bh
AACSB : Communication Abh b h bh
ICPA : FN Decision Making
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Accessibility : Keyboard Navigation Diffi
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culty : 1 Easybh bh bh
AICPA : BB Industry
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Bloom's : Understand bh bh
Learning Objective : 01-bh bh bh
05 Understand why sampling is important in an audit. Gradable : automatic
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Accessibility : Screen Reader Compatible
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Topic : The Audit Process
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2) Which of the following statements best describes a relationship between sample size a
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nd other elements of auditing?
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2) bh
, A) If materiality increases, so will the sample size.
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B) If the desired level of assurance increases, sample sizes can be smaller.
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C) If materiality decreases, sample size will need to increase.
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D) There is no relationship between sample size and materiality or the desired level
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of assurance.
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Question Details bh
Accessibility : Keyboard Navigation Bloo
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m's : Applybh bh
Difficulty : 2 Medium bh bh bh
AICPA : BB Critical Thinkin
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g AACSB : Analytical Think
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ing AICPA : FN Risk Analy
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sis
Learning Objective : 01-
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05 Understand why sampling is important in an audit. Gradable : automatic
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Accessibility : Screen Reader Compatible
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Topic : The Audit Process
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3) Which of the following statements about the study of auditing is NOT true?
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3) bh
A) The study of auditing can be valuable to future accountants and business decision make
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rs whether or not they plan to become auditors.
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B) The study of auditing focuses on learning the analytical and logical skills necessary
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to evaluate the relevance and reliability of information.
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C) The study of auditing focuses on learning the rules, techniques, and computations required
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to analyze financial statements for making investment recommendations.
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D) The study of auditing begins with the understanding of a coherent logical framework a
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nd techniques useful for gathering and analyzing evidence about others’ assertions.
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, Question Details bh
AACSB : Communication A
bh b h bh
ICPA : FN Decision Making
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Accessibility : Keyboard Navigation bh bh bh
Learning Objective : 01-
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01 Understand why studying auditing can be valuable to you whether or not you AICPA : BB Indu
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stry
Difficulty : 2 Medium bh bh bh bh
Bloom's : Analyze Gra bh bh bh
dable : automatic
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Accessibility : Screen Reader Compatible To
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pic : The Importance for Studying Auditing
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4) The basic definition of auditing essentially indicates that, overall, auditing is a process to:
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4) bh
A) detect fraud. bh
B) examine individual transactions so that the auditor may certify as to their validity.
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C) objectively obtain and evaluate evidence regarding assertions made by another party.
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D) assure the consistent application of correct accounting procedures.
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Question Details bh
AACSB : Communication Access
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ibility : Keyboard Navigation Bloo
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m's : Remember
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Difficulty : 1 Easy AI bh bh bh bh
CPA : FN Reporting
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Learning Objective : 01-
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03 Know the basic definition of a financial statement audit. AICPA : BB Critic
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al Thinking
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Gradable : automatic bh bh
Accessibility : Screen Reader Compatible
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Topic : Auditing, Attest, and Assurance Services Defined
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5) Assurance services may improve all of the following except:
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5)
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, A) relevance.
B) credibility.
C) periodicity.
D) reliability.
Question Details bh
AACSB : Communication Access
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ibility : Keyboard Navigation Bloo
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m's : Remember
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Difficulty : 1 Easy AI bh bh bh bh
CPA : BB Industry AI
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CPA : FN Reporting
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Learning Objective : 01-
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03 Know the basic definition of a financial statement audit. Gradable : automati
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c
Accessibility : Screen Reader Compatible
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Topic : Auditing, Attest, and Assurance Services Defined
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6) Evidence is reliable if it: bh bh bh bh
6) bh
A) signals the true state of a management assertion.
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B) applies to the period being audited. bh bh bh bh bh
C) relates to the audit assertion being tested.
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D) is sufficient to justify a conclusion.
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Question Details bh
Accessibility : Keyboard Navigation Diffi
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culty : 1 Easy
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Bloom's : Understand bh bh
Learning Objective : 01-
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04 Understand the fundamental concepts that underlie financial statement audi AICPA : BB Critical
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Thinking
AACSB : Analytical Thinkin
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g AICPA : FN Measurement
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Topic : Fundamental Concepts in Conducting a Financial Statement Audit
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Gradable : automatic bh bh
Accessibility : Screen Reader Compatible
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