,TEST BANK FOR p p
Auditing & Assurance Services A Systematic Approach 12e
p p p p p p p
pMessier Chapter 1-21
p p
Chapter 1 p
Student name:
p
1) Why pdo p auditors p often p use p a p sampling papproach p to p evidence
p gathering? 1) p
A) Auditors pare pexperts pand pdo pnot pneed pto plook pat pmuch pto pknow pwhether
pthe pfinancial pstatements pare pcorrect por pnot.
B) Auditors pmust pbalance pthe pcost pof pthe paudit pwith pthe pneed pfor pprecision pand pfor psome
ptypes pof pevidence, pcomputer pdata panalytic papproaches pcan’t pbe pused.
C) Auditors p must p limit p their p exposure p to p their p auditee pto p maintain p independence.
D) The pauditor's prelationship pwith pthe pauditee pis pgenerally padversarial, pso pthe pauditor
pwill pnot phave paccess pto pall pof pthe pfinancial pinformation pof pthe pcompany.
Question pDetails
AACSB p:
p Communication pAICPA
p: pFN pDecision pMaking
Accessibility p: pKeyboard pNavigation
pDifficulty p : p1 pEasy
AICPA p: pBB pIndustry
pBloom's p: pUnderstand
Learning pObjective p: p01-05 pUnderstand pwhy psampling pis pimportant pin pan
paudit. pGradable p: pautomatic
Accessibility p: pScreen pReader pCompatible
pTopic p: pThe p Audit pProcess
2) Which pof pthe pfollowing pstatements pbest pdescribes pa prelationship pbetween psample
psize pand pother pelements pof pauditing?
2) p
, A) If p materiality pincreases, p so p will p the p sample p size.
B) If p the p desired p level p of passurance p increases, p sample p sizes p can p be p smaller.
C) If p materiality pdecreases, p sample p size p will p need p to p increase.
D) There pis pno prelationship pbetween psample psize pand pmateriality por pthe pdesired
plevel pof passurance.
Question pDetails
Accessibility p: pKeyboard pNavigation
pBloom's p: pApply
Difficulty p : p 2 p Medium
AICPA : pBB Critical
pThinking AACSB :
Analytical p Thinking p AICPA
: p FN p Risk p Analysis
Learning pObjective p: p01-05 pUnderstand pwhy psampling pis pimportant pin pan
paudit. pGradable p: pautomatic
Accessibility p: pScreen pReader pCompatible
pTopic p: pThe p Audit pProcess
3) Which pof pthe p following pstatements p about p the p study p of p auditing p is p NOT p true?
3) p
A) The pstudy pof pauditing pcan pbe pvaluable pto pfuture paccountants pand pbusiness
pdecision pmakers pwhether por pnot pthey pplan pto pbecome pauditors.
B) The pstudy pof pauditing pfocuses pon plearning pthe panalytical pand plogical pskills
pnecessary pto pevaluate pthe prelevance pand preliability pof pinformation.
C) The pstudy pof pauditing pfocuses pon plearning pthe prules, ptechniques, pand pcomputations
prequired pto panalyze pfinancial pstatements pfor pmaking pinvestment precommendations.
D) The pstudy pof pauditing pbegins pwith pthe punderstanding pof pa pcoherent plogical
pframework pand ptechniques puseful pfor pgathering pand panalyzing pevidence pabout pothers’
passertions.
, Question pDetails
AACSB p:
p Communication pAICPA
p: pFN pDecision pMaking
Accessibility p: pKeyboard p Navigation
Learning pObjective p: p01-01 p Understand p why pstudying pauditing pcan pbe pvaluable pto p you pwhether
por pnot p you p AICPA p: pBB pIndustry
Difficulty p: p2 pMedium
pBloom's p: pAnalyze
pGradable p: pautomatic
Accessibility p : pScreen p Reader
pCompatible pTopic p: pThe pImportance pfor
pStudying pAuditing
4) The p basic p definition p of p auditing p essentially p indicates p that, p overall, p auditing p is p a p process p to:
4) p
A) detect p fraud.
B) examine pindividual p transactions p so p that p the p auditor p may p certify pas p to p their p validity.
C) objectively pobtain p and p evaluate p evidence p regarding p assertions p made p by p another p party.
D) assure pthe p consistent p application p of pcorrect p accounting p procedures.
Question pDetails
AACSB p: p Communication
pAccessibility p: pKeyboard
pNavigation pBloom's p: pRemember
pDifficulty p : p1 pEasy
AICPA p: pFN pReporting
Learning pObjective p: p01-03 pKnow pthe pbasic pdefinition pof pa pfinancial
pstatement paudit. p AICPA p: pBB pCritical pThinking
Gradable p : p automatic
Accessibility p : pScreen p Reader p Compatible
Topic p : pAuditing, p Attest, pand p Assurance p Services pDefined
5) Assurance p services p may pimprove p all p of p the p following p except:
5) p
Auditing & Assurance Services A Systematic Approach 12e
p p p p p p p
pMessier Chapter 1-21
p p
Chapter 1 p
Student name:
p
1) Why pdo p auditors p often p use p a p sampling papproach p to p evidence
p gathering? 1) p
A) Auditors pare pexperts pand pdo pnot pneed pto plook pat pmuch pto pknow pwhether
pthe pfinancial pstatements pare pcorrect por pnot.
B) Auditors pmust pbalance pthe pcost pof pthe paudit pwith pthe pneed pfor pprecision pand pfor psome
ptypes pof pevidence, pcomputer pdata panalytic papproaches pcan’t pbe pused.
C) Auditors p must p limit p their p exposure p to p their p auditee pto p maintain p independence.
D) The pauditor's prelationship pwith pthe pauditee pis pgenerally padversarial, pso pthe pauditor
pwill pnot phave paccess pto pall pof pthe pfinancial pinformation pof pthe pcompany.
Question pDetails
AACSB p:
p Communication pAICPA
p: pFN pDecision pMaking
Accessibility p: pKeyboard pNavigation
pDifficulty p : p1 pEasy
AICPA p: pBB pIndustry
pBloom's p: pUnderstand
Learning pObjective p: p01-05 pUnderstand pwhy psampling pis pimportant pin pan
paudit. pGradable p: pautomatic
Accessibility p: pScreen pReader pCompatible
pTopic p: pThe p Audit pProcess
2) Which pof pthe pfollowing pstatements pbest pdescribes pa prelationship pbetween psample
psize pand pother pelements pof pauditing?
2) p
, A) If p materiality pincreases, p so p will p the p sample p size.
B) If p the p desired p level p of passurance p increases, p sample p sizes p can p be p smaller.
C) If p materiality pdecreases, p sample p size p will p need p to p increase.
D) There pis pno prelationship pbetween psample psize pand pmateriality por pthe pdesired
plevel pof passurance.
Question pDetails
Accessibility p: pKeyboard pNavigation
pBloom's p: pApply
Difficulty p : p 2 p Medium
AICPA : pBB Critical
pThinking AACSB :
Analytical p Thinking p AICPA
: p FN p Risk p Analysis
Learning pObjective p: p01-05 pUnderstand pwhy psampling pis pimportant pin pan
paudit. pGradable p: pautomatic
Accessibility p: pScreen pReader pCompatible
pTopic p: pThe p Audit pProcess
3) Which pof pthe p following pstatements p about p the p study p of p auditing p is p NOT p true?
3) p
A) The pstudy pof pauditing pcan pbe pvaluable pto pfuture paccountants pand pbusiness
pdecision pmakers pwhether por pnot pthey pplan pto pbecome pauditors.
B) The pstudy pof pauditing pfocuses pon plearning pthe panalytical pand plogical pskills
pnecessary pto pevaluate pthe prelevance pand preliability pof pinformation.
C) The pstudy pof pauditing pfocuses pon plearning pthe prules, ptechniques, pand pcomputations
prequired pto panalyze pfinancial pstatements pfor pmaking pinvestment precommendations.
D) The pstudy pof pauditing pbegins pwith pthe punderstanding pof pa pcoherent plogical
pframework pand ptechniques puseful pfor pgathering pand panalyzing pevidence pabout pothers’
passertions.
, Question pDetails
AACSB p:
p Communication pAICPA
p: pFN pDecision pMaking
Accessibility p: pKeyboard p Navigation
Learning pObjective p: p01-01 p Understand p why pstudying pauditing pcan pbe pvaluable pto p you pwhether
por pnot p you p AICPA p: pBB pIndustry
Difficulty p: p2 pMedium
pBloom's p: pAnalyze
pGradable p: pautomatic
Accessibility p : pScreen p Reader
pCompatible pTopic p: pThe pImportance pfor
pStudying pAuditing
4) The p basic p definition p of p auditing p essentially p indicates p that, p overall, p auditing p is p a p process p to:
4) p
A) detect p fraud.
B) examine pindividual p transactions p so p that p the p auditor p may p certify pas p to p their p validity.
C) objectively pobtain p and p evaluate p evidence p regarding p assertions p made p by p another p party.
D) assure pthe p consistent p application p of pcorrect p accounting p procedures.
Question pDetails
AACSB p: p Communication
pAccessibility p: pKeyboard
pNavigation pBloom's p: pRemember
pDifficulty p : p1 pEasy
AICPA p: pFN pReporting
Learning pObjective p: p01-03 pKnow pthe pbasic pdefinition pof pa pfinancial
pstatement paudit. p AICPA p: pBB pCritical pThinking
Gradable p : p automatic
Accessibility p : pScreen p Reader p Compatible
Topic p : pAuditing, p Attest, pand p Assurance p Services pDefined
5) Assurance p services p may pimprove p all p of p the p following p except:
5) p
