Auditing & Assurance Services
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TEST BANK
Auditing & Assurance Services: A Systematic
Approach, 11th Edition Chapters 1 - 21
,Auditing & Assurance Services
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Chapter,1:,An,Introduction,to,Assurance,and,Financial,Statement,Auditing
Chapter,2:,The,Financial,Statement,Auditing,Environment
Chapter,3:,Audit,Planning,,Types,of,Audit,Tests,,and,Materiality
Chapter,4:,Risk,Assessment
Chapter,5:,Evidence,and,Documentation
Chapter,6:,Internal,Control,in,a,Financial,Statement,Audit
Chapter,7:,Auditing,Internal,Control,over,Financial,Reporting
Chapter,8:,Audit,Sampling:,An,Overview,and,Application,to,Tests,of,Controls
Chapter,9:,Audit,Sampling:,An,Application,to,Substantive,Tests,of,Account,Balances
Chapter,10:,Auditing,the,Revenue,Process
Chapter,11:,Auditing,the,Purchasing,Process
Chapter,12:,Auditing,the,Human,Resource,Management,Process
Chapter,13:,Auditing,the,Inventory,Management,Process
Chapter,14:,Auditing,the,Financing/Investing,Process:,Prepaid,Expenses,,Intangible,Assets,,and,
Property,,Plant,,and,Equipment
Chapter,15:,Auditing,the,Financing/Investing,Process:,Long-
Term,Liabilities,,Stockholders’,Equity,,and,Income,Statement,Accounts
Chapter,16:,Auditing,the,Financing/Investing,Process:,Cash,and,Investments
Chapter,17:,Completing,the,Audit,Engagement
Chapter,18:,Reports,on,Audited,Financial,Statements
Chapter,19:,Professional,Conduct,,Independence,,and,Quality,Management
Chapter,20:,Legal,Liability
Chapter,21:,Assurance,,Attestation,,and,Internal,Auditing,Services
,Auditing & Assurance Services
, , ,
Chapter, 01,
An, Introduction, to, Assurance, and, Financial, Statement, Auditing
True, /, False, Questions
1. Independence, standards, are, required,for, audits, of,public, companies,, but, not, for, audits,of,
private,companies.
True False
2. Decision, makers, demand, reliable, information, that, is, provided, by, accountants.
True False
3. Information, asymmetry , seldom, occurs.
True False
4. Conflicts, of, interest, often, occur, between, absentee, owners, and, managers.
True False
5. Auditing, services, and, attestation, services, are, the, same.
True False
6. Auditing,is,a,type,of,attest,service.
True False
7. Testing,all,transactions,that,occurred,during,the,period,is,cost,prohibitive.
True False
Multiple,Choice, Questions
, Auditing & Assurance Services
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8. Why,do,auditors,generally,use,a,sampling,approach,to,evidence,gathering?
A. Auditors, are,experts, and,do,not,need,to,look,at,much,to,know,whether,the,financial,sta
tements,are,correct,or,not.
B. Auditors, must,balance,the,cost,of,the,audit,with,the,need,for,pr
ecision.
C. Auditors,must,limit,their,exposure,to,their,auditee,to,maintain,in
dependence.
D. The,auditor's,relationship,with,the,auditee,is,generally,adversarial,,so,the,auditor,will,no
t,have,access,to,all,of,the,financial,information,of,the,company.
9. Which, of, the, following, statements, best, describes, a, relationship, between, sample, size, and,ot
her,elements,of,auditing?
A. If, materiality, increases,, so, will, the,s
ample,size.
B. If, the, desired, level, of, assurance, increases,, sample, sizes, can, be,s
maller.
C. If,materiality ,decreases,,sample,size,will,need,to,i
ncrease.
D. There,is,no,relationship, between,sample,size, and,materiality,or,the, desired,level,of,
assurance.
10. Which, of,the, following,statements, about, the, study, of, auditing, is, NOT,true?
A. The, study, of, auditing, can, be, valuable, to, future, accountants, and, business, decision,m
akers,whether,or,not,they,plan,to,become,auditors.
B. The, study, of, auditing, focuses, on, learning, the, analytical, and, logical, skills, necessary, to,ev
aluate,the,relevance,and,reliability,of,information.
C. The, study, of, auditing, focuses, on, learning, the, rules,, techniques,, and, computations,re
quired,to,analyze,financial,statements.
D. The, study, of, auditing, begins, with,the, understanding, of, a, coherent, logical, framework,an
d,techniques,useful,for,gathering,and,analyzing,evidence,about,others',assertions.
11. The,basic,purpose,of,a,financial,statement,audit,is,to
A. Detect,
fraud.
B. Examine, individual, transactions , so, that, the, auditor, may, certify, as, to,th
eir,validity.
C. Provide, assurance, regarding, whether, the, auditee's, financial, statements, are,f
airly,stated.
D. Assure, the, consistent, application, of, correct, accounting,p
rocedures.
, , ,
TEST BANK
Auditing & Assurance Services: A Systematic
Approach, 11th Edition Chapters 1 - 21
,Auditing & Assurance Services
, , ,
Chapter,1:,An,Introduction,to,Assurance,and,Financial,Statement,Auditing
Chapter,2:,The,Financial,Statement,Auditing,Environment
Chapter,3:,Audit,Planning,,Types,of,Audit,Tests,,and,Materiality
Chapter,4:,Risk,Assessment
Chapter,5:,Evidence,and,Documentation
Chapter,6:,Internal,Control,in,a,Financial,Statement,Audit
Chapter,7:,Auditing,Internal,Control,over,Financial,Reporting
Chapter,8:,Audit,Sampling:,An,Overview,and,Application,to,Tests,of,Controls
Chapter,9:,Audit,Sampling:,An,Application,to,Substantive,Tests,of,Account,Balances
Chapter,10:,Auditing,the,Revenue,Process
Chapter,11:,Auditing,the,Purchasing,Process
Chapter,12:,Auditing,the,Human,Resource,Management,Process
Chapter,13:,Auditing,the,Inventory,Management,Process
Chapter,14:,Auditing,the,Financing/Investing,Process:,Prepaid,Expenses,,Intangible,Assets,,and,
Property,,Plant,,and,Equipment
Chapter,15:,Auditing,the,Financing/Investing,Process:,Long-
Term,Liabilities,,Stockholders’,Equity,,and,Income,Statement,Accounts
Chapter,16:,Auditing,the,Financing/Investing,Process:,Cash,and,Investments
Chapter,17:,Completing,the,Audit,Engagement
Chapter,18:,Reports,on,Audited,Financial,Statements
Chapter,19:,Professional,Conduct,,Independence,,and,Quality,Management
Chapter,20:,Legal,Liability
Chapter,21:,Assurance,,Attestation,,and,Internal,Auditing,Services
,Auditing & Assurance Services
, , ,
Chapter, 01,
An, Introduction, to, Assurance, and, Financial, Statement, Auditing
True, /, False, Questions
1. Independence, standards, are, required,for, audits, of,public, companies,, but, not, for, audits,of,
private,companies.
True False
2. Decision, makers, demand, reliable, information, that, is, provided, by, accountants.
True False
3. Information, asymmetry , seldom, occurs.
True False
4. Conflicts, of, interest, often, occur, between, absentee, owners, and, managers.
True False
5. Auditing, services, and, attestation, services, are, the, same.
True False
6. Auditing,is,a,type,of,attest,service.
True False
7. Testing,all,transactions,that,occurred,during,the,period,is,cost,prohibitive.
True False
Multiple,Choice, Questions
, Auditing & Assurance Services
, , ,
8. Why,do,auditors,generally,use,a,sampling,approach,to,evidence,gathering?
A. Auditors, are,experts, and,do,not,need,to,look,at,much,to,know,whether,the,financial,sta
tements,are,correct,or,not.
B. Auditors, must,balance,the,cost,of,the,audit,with,the,need,for,pr
ecision.
C. Auditors,must,limit,their,exposure,to,their,auditee,to,maintain,in
dependence.
D. The,auditor's,relationship,with,the,auditee,is,generally,adversarial,,so,the,auditor,will,no
t,have,access,to,all,of,the,financial,information,of,the,company.
9. Which, of, the, following, statements, best, describes, a, relationship, between, sample, size, and,ot
her,elements,of,auditing?
A. If, materiality, increases,, so, will, the,s
ample,size.
B. If, the, desired, level, of, assurance, increases,, sample, sizes, can, be,s
maller.
C. If,materiality ,decreases,,sample,size,will,need,to,i
ncrease.
D. There,is,no,relationship, between,sample,size, and,materiality,or,the, desired,level,of,
assurance.
10. Which, of,the, following,statements, about, the, study, of, auditing, is, NOT,true?
A. The, study, of, auditing, can, be, valuable, to, future, accountants, and, business, decision,m
akers,whether,or,not,they,plan,to,become,auditors.
B. The, study, of, auditing, focuses, on, learning, the, analytical, and, logical, skills, necessary, to,ev
aluate,the,relevance,and,reliability,of,information.
C. The, study, of, auditing, focuses, on, learning, the, rules,, techniques,, and, computations,re
quired,to,analyze,financial,statements.
D. The, study, of, auditing, begins, with,the, understanding, of, a, coherent, logical, framework,an
d,techniques,useful,for,gathering,and,analyzing,evidence,about,others',assertions.
11. The,basic,purpose,of,a,financial,statement,audit,is,to
A. Detect,
fraud.
B. Examine, individual, transactions , so, that, the, auditor, may, certify, as, to,th
eir,validity.
C. Provide, assurance, regarding, whether, the, auditee's, financial, statements, are,f
airly,stated.
D. Assure, the, consistent, application, of, correct, accounting,p
rocedures.
