TEST BANK For Auditing & Assurance Services: A Systematic Approach, 11th Edition By William Messier Jr, Steven Glover, Verified Chapters 1 - 21, Complete

Auditing & Assurance Services



TEST BANK Auditing & Assurance Services: A
Systematic Approach,11th Edition by Messier
Chapters 1-21

,Auditing & Assurance Services



Chapterj1:jAnjIntroductionjtojAssurancejandjFinancialjStatementjAuditing

Chapterj2:jThejFinancialjStatementjAuditingjEnvironment

Chapterj3:jAuditjPlanning,jTypesjofjAuditjTests,jandjMateriality

Chapterj4:jRiskjAssessment

Chapterj5:jEvidencejandjDocumentation

Chapterj6:jInternaljControljinjajFinancialjStatementjAudit

Chapterj7:jAuditingjInternaljControljoverjFinancialjReporting

Chapterj8:jAuditjSampling:jAnjOverviewjandjApplicationjtojTestsjofjControls

Chapterj9:jAuditjSampling:jAnjApplicationjtojSubstantivejTestsjofjAccountjBalances

Chapterj10:jAuditingjthejRevenuejProcess

Chapterj11:jAuditingjthejPurchasingjProcess

Chapterj12:jAuditingjthejHumanjResourcejManagementjProcess

Chapterj13:jAuditingjthejInventoryjManagementjProcess

Chapterj14:jAuditingjthejFinancing/InvestingjProcess:jPrepaidjExpenses,jIntangiblejAssets,jandjPrope
rty,jPlant,jandjEquipment

Chapterj15:jAuditingjthejFinancing/InvestingjProcess:jLong-
TermjLiabilities,jStockholders’jEquity,jandjIncomejStatementjAccounts

Chapterj16:jAuditingjthejFinancing/InvestingjProcess:jCashjandjInvestments

Chapterj17:jCompletingjthejAuditjEngagement

Chapterj18:jReportsjonjAuditedjFinancialjStatements

Chapterj19:jProfessionaljConduct,jIndependence,jandjQualityjManagement

Chapterj20:jLegaljLiability

Chapterj21:jAssurance,jAttestation,jandjInternaljAuditingjServices

,Auditing & Assurance Services



Chapterj 01j

AnjIntroductionjtojAssurancejandjFinancialjStatementjAuditing


Truej /j Falsej Questions

1. Independencejstandardsjarejrequiredjforjauditsjofjpublicjcompanies,jbutjnotjforjau
ditsjofjprivatejcompanies.

True False

2. Decisionjmakersjdemandjreliablejinformationjthatjisjprovidedjbyjaccountants.

True False

3. Informationjasymmetryjseldomjoccurs.

True False

4. Conflictsjofjinterestjoftenjoccurjbetweenjabsenteejownersjandjmanagers.

True False

5. Auditingjservicesjandjattestationjservicesjarejthejsame.

True False

6. Auditingjisjajtypejofjattestjservice.

True False

7. Testingjalljtransactionsjthatjoccurredjduringjthejperiodjisjcostjprohibitive.

True False



MultiplejChoicejQuestions

, Auditing & Assurance Services


8. Whyjdojauditorsjgenerallyjusejajsamplingjapproachjtojevidencejgathering?


A. Auditorsjarejexpertsjandjdojnotjneedjtojlookjatjmuchjtojknowjwhetherjthejfinanci
aljstatementsjarejcorrectjorjnot.
B. Auditorsjmustjbalancejthejcostjofjthejauditjwithjthejneedjfo
rjprecision.
C. Auditorsjmustjlimitjtheirjexposurejtojtheirjauditeejtojmaintainj
independence.
D. Thejauditor'sjrelationshipjwithjthejauditeejisjgenerallyjadversarial,jsojthejauditorj
willjnotjhavejaccessjtojalljofjthejfinancialjinformationjofjthejcompany.

9. Whichjofjthejfollowingjstatementsjbestjdescribesjajrelationshipjbetweenjsamplejsizej
andjotherjelementsjofjauditing?


A. Ifjmaterialityjincreases,jsojwilljthej
samplejsize.
B. Ifjthejdesiredjleveljofjassurancejincreases,jsamplejsizesjcanj
bejsmaller.
C. Ifjmaterialityjdecreases,jsamplejsizejwilljneedjt
ojincrease.
D. Therejisjnojrelationshipjbetweenjsamplejsizejandjmaterialityjorjthejdesiredjle
veljofjassurance.

10. WhichjofjthejfollowingjstatementsjaboutjthejstudyjofjauditingjisjNOTjtrue?


A. Thejstudyjofjauditingjcanjbejvaluablejtojfuturejaccountantsjandjbusinessjdecisi
onjmakersjwhetherjorjnotjtheyjplanjtojbecomejauditors.
B. Thejstudyjofjauditingjfocusesjonjlearningjthejanalyticaljandjlogicaljskillsjnecessary
jtojevaluatejthejrelevancejandjreliabilityjofjinformation.
C. Thejstudyjofjauditingjfocusesjonjlearningjthejrules,jtechniques,jandjcomputation
sjrequiredjtojanalyzejfinancialjstatements.
D. Thejstudyjofjauditingjbeginsjwithjthejunderstandingjofjajcoherentjlogicaljframewo
rkjandjtechniquesjusefuljforjgatheringjandjanalyzingjevidencejaboutjothers'jasse
rtions.

11. Thejbasicjpurposejofjajfinancialjstatementjauditjisjto


A. Detectj
fraud.
B. Examinejindividualjtransactionsjsojthatjthejauditorjmayjcertifyjasj
tojtheirjvalidity.
C. Providejassurancejregardingjwhetherjthejauditee'sjfinancialjstatementsj
arejfairlyjstated.
D. Assurejthejconsistentjapplicationjofjcorrectjaccountin
gjprocedures.