TESTBANK FOR AUDITING A PRACTICAL APPROACH, 4
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TH CANADIAN EDITION 4TH EDITION, KINDLE EDITIONB
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Y ROBYN MORONEY , FIONA CAMPBELL , JANE HAMILT
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ON , VALERIE WARREN
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, TESTvBANKvforvAuditingvAvPracticalvApproach,v4thvCanadianvEditionvMoroney,vCampbell,vWarrenv
Stuvia.comv-
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
The Marketplace to Buy and Sell your Study Material
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CHAPTER 1 v
INTRODUCTION AND OVERVIEW OF AUDIT ANDASSURANCE
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CHAPTER LEARNING OBJECTIVES
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1. Definevanvassurancevengagement.
Anvassurancevengagementvinvolvesvanvassurancevprovidervarrivingvatanvopinionvaboutvsomevi
nformationvbeingvprovidedvbyvtheirvclientvtoavthirdvparty.vAvfinancialvstatementvauditvisvonevtype
v ofvassuranceengagement.vThisvengagementvinvolvesvanvauditorvarrivingvatvanvopinionaboutvt
hevfairvpresentationvofvthevfinancialvstatements.vThevauditreportvisvaddressedvtovthevsharehold
ersvofvthevcompanyvbeingvaudited,butvothervusersvmayvreadvthevfinancialvstatements.vLearning
v aboutauditingvandvassurancevrequiresvanvunderstandingvofvauditingvandassurancevterminolo
gy,vincludingvtermsvsuchvasvauditvrisk,vmateriality,internalvcontrols,vlistedventity,vandvassertion
s.v
2. Explainvwhyvtherevisvavdemandvforvauditvandvassurancevservices.
Financialvstatementvusersvincludevinvestorsv(shareholders),vsuppliers,customers,vlenders,vem
ployees,vgovernments,vandvthevgeneralvpublic.Thesevgroupsvofvusersvdemandvauditedvfinanci
alvstatementsvbecausevoftheirvremotenessvfromvtheventity,vaccountingvcomplexity,vtheirincenti
vescompetingvwithvthosevofvtheventity‘svmanagers,vandvtheirvneedforvreliablevinformationvonvw
hichvtovbasevdecisions.vThevtheoriesvusedtovdescribevthevdemandvforvauditvandvassurancevser
vicesvarevagencytheory,vthevinformationvhypothesis,vandvthevinsurancevhypothesis.v
3. Differentiatevbetweenvtypesvofvassurancevservices.
Assurancevservicesvincludevfinancialvstatementvaudits,vcomplianceaudits,vperformancevaudits,
v comprehensivevaudits,vinternalvaudits,andvassurancevonvcorporatevsocialvresponsibilityv(CSR
)vdisclosures.v
4. Explainvthevdifferentvlevelsvofvassurance.
Thevdifferentvlevelsvofvassurancevincludevreasonablevassurance,vwhichisvthevhighestvlevelvofva
ssurance,vlimitedvassurance,vandvnovassurance.Reasonablevassurancevisvprovidedvonvanvaud
itvofvavcompany‘sfinancialvstatements.vLimitedvassurancevisvprovidedvinvavreviewvofv
acompany‘svfinancial Dsotwante
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, TESTvBANKvforvAuditingvAvPracticalvApproach,v4thvCanadianvEditionvMoroney,vCampbell,vWarrenv
Stuvia.comv-
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
The Marketplace to Buy and Sell your Study Material
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5. Outlinevdifferentvauditvopinions
Anvauditorvcanvissuevanvunmodifiedvopinion,valsovknownvasvavcleanreport,vorvanvunmodifiedvop
inionvwithvanvemphasisvofvmattervparagraph.Alternatively,vavmodifiedvopinionvmayvbevissuedva
svavqualified,vanadverse,vorvavdisclaimervofvopinion.v
6. Differentiatevbetweenvthevrolesvofvthevpreparervandvthevauditor,vandvdiscussvthev
differentvfirmsvthatvprovidevassurancevservices.
Itvisvthevresponsibilityvofvavcompany‘svgoverningvbodyvtovensurevthatitsvfinancialvstatementsvar
evrelevant,vreliable,vcomparable,vunderstandable,andvtruevandvfair.vItvisvthevresponsibilityvofvthe
v auditorvtovformvanopinionvonvthevfairvpresentationvofvthevfinancialvstatements.vInvdoing,sov1-
v 2vAuditing:vAvPracticalvApproach,vFourthv CanadianvEdition
thevauditorvmustvmaintainvprofessionalvscepticismvandvutilizevprofessionaljudgementvandvduev
care.v
ThevfirmsvthatvprovidevassurancevservicesvincludevthevBig-
4internationalvfirms,vthevnationalvfirmsv(withvinternationalvlinks),localvandvregionalvfirms,vandvco
nsultingvfirmsvthatvtendvtovspecializeinvassurancevofvCSRvandvenvironmentalvdisclosures.v
7. Identifyvthevdifferentvregulators,vlegislation,vandvregulationsvsurroundingvthev
assurancevprocess.
lOM v v v v v v v v v vv
oAR c P S D | 30878 49 5
IntroductionvandvOverviewvofvAuditvandvAssurance 1v-v3
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Stuvia.comv-
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The Marketplace to Buy and Sell your Study Material
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TRUE-FALSE STATEMENTS v
1. Onlyvcurrentvinvestorsv(notvpotentialvinvestors)varevconsideredvtovbevusersvofvthevfinancialvs
tatements.v
Answer:vFalsev
Bloomcode:vKnowledgevDiffic
ulty:vEasyv
LearningvObjective:vExplainvwhyvtherevisvavdemandvforvauditvandvassurancevservices.vSe
ctionvReference:v1.2vDemandvforvauditvandvassurancevservicesv
CPAvCompetency:vAuditvandvAssurancevAACSB
:vAnalyticv
2. Insurancevhypothesisvisvavmeansvwherebyvthevinvestorvcanvguaranteevthevsuccessvofvtheirvi
nvestment.v
Answer:vFalsev
Bloomcode:vComprehensionv
Difficulty:vMediumv
LearningvObjective:vExplainvwhyvtherevisvavdemandvforvauditvandvassurancevservices.vSe
ctionvReference:v1.2vDemandvforvauditvandvassurancevservicesv
CPAvCompetency:vAuditvandvAssurancevAACSB
:vAnalyticv
3. Avcompliancevauditvinvolvesvgatheringvevidencevtovascertainvwhethervthevpersonvorventityvu
ndervreviewvhasvfollowedvthevrules,vpolicies,vprocedures,vlawsvandvregulationsvwithvwhichvthe
yvmustvconformv
Answer:vTruev
Bloomcode:vComprehensionv
Difficulty:vMediumv
LearningvObjective:vDifferentiatevbetweenvtypesvofvassurancevservices.vSecti
onvReference:v1.3vDifferentvassurancevservicesv
CPAvCompetency:vAuditvandvAssurancevAACSB
:vAnalyticv
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