TEST BANK For Auditing & Assurance Services: A Systematic
m m m m m m m m m
Approach, 12th Edition m m m
Chapters 1 - 21 Complete
m m m m
,Chapter m1:mAnmIntroductionmtomAssurancemandmFinancialmStatementmAuditingmC
hapter m2:mThemFinancialmStatementmAuditingmEnvironment
Chapter m3:mAuditmPlanning,mTypesmofmAudittTests,mandmMateriality
m Chapter m4:mRiskmAssessment
Chapter m5:mEvidencetandmDocumentation
Chapter m6:mInternalmControlminmatFinancialmStatementtAuditmCha
pterm7:mAuditingmInternalmControlmovermFinancialmReporting
Chapter m8:mAuditmSampling:mAnmOverviewmandmApplicationmto mTestsmofmControlsmCh
apter m9:mAuditmSampling:mAnmApplicationmto mSubstantivemTestsmofmAccounttBalancesm
Chapter m10:mAuditingmthemRevenuemProcess
Chapter m11:mAuditingmthemPurchasingmProcess
Chapter m12:mAuditingmthemHumanmResourcemManagementmProces
smChapter m13:mAuditingmthemInventorymManagementmProcess
Chapter m14:mAuditingmthemFinancing/Investing mProcess:mPrepaidmExpenses,mIntangiblemAssets,ma
ndmProperty,mPlant,mandmEquipment
Chapter m15:mAuditingmthemFinancing/Investing mProcess:mLong-
TermmLiabilities,mStockholders’ mEquity,mandmIncomemStatementtAccountsmCha
pterm16:mAuditingmthemFinancing/Investing mProcess:mCashmandmInvestmentsmCh
apter m17:mCompletingtthemAudittEngagement
Chapter m18:mReportsmonmAuditedmFinancialmStatements
Chapter m19:mProfessionalmConduct,mIndependence,mandmQualitymManagementmC
hapter m20:mLegalmLiability
Chapter m21:mAssurance,mAttestation,mandmInternalmAuditingmServices
,Auditing&mAssurancetServices:mASystematicmApproach,m12et(Messier)mChapterm
1mAnmIntroductionmtomAssuranceandmFinancialmStatementtAuditing
1) Auditingtfocusesonrules,mtechniques,mandcomputationsrequiredtoprepareandanalyzefin m
ancialminformation.
ANSWER:mFALSEmDiffic
ulty:1Easy
Topic:mThemImportanceformStudyingmAuditingmL
earningmObjective:m01-
01mUnderstandwhystudyingauditingmcantbevaluablettoyoutwhetherornot tyouplantotbecomemanaud mit
or,tand twhymit tismdifferent tfrommstudyingaccounting.
Bloom's:mRemembermAAC
mSB:mCommunication
AICPA:m BBLegal;mFNDecisionmMaking
2) Decisiontmakersdemand treliableinformationthatisprovidedbyaccountants.
ANSWER:mTRUEDifficu
mlty:1Easy
Topic:m ThemDemandformAuditingand mAssurance
mLearningmObjective:m01-
02mUnderstand mthetdemandforauditingmandbeabletoexplaintthetdesired tcharacteristicsofauditorstamndauditservic
hroughtananalogytoahousetinspectorandahousetinspectionmservice.
Bloom's:mUnderstand mAAm
CSB:mCommunication
AICPA:m FNDecisiontMaking;mBBIndustry
3) Informationasymmetryseldomtoccurs.
ANSWER:mFALSEmDiffic
ulty:2tMedium
Topic:mThemDemandformAuditingtand mAssurance
mLearningmObjective:m01-
02mUnderstand mthetdemandforauditingmandbeabletoexplainmthetdesiredcharacteristicsofauditorstamndauditservic
hroughtananalogytoathousetinspectorand tahousetinspectionmservice.
Bloom's:m Apply
AACSB:m Communication
AICPA:m BBIndustry;mFNReporting
, 4) Conflictsofinterestoftenoccurbetweenabsenteeownersandmanagers.
ANSWER:mTRUEDifficu
mlty:2Medium
Topic:mThemDemandformAuditingtand mAssurance
mLearningmObjective:m01-
02mUnderstand tthetdemandforauditingmandbeabletoexplaintthetdesired tcharacteristicsofauditorstamndauditservic
hroughtananalogytoathousetinspectorand tahousetinspectionmservice.
Bloom's:m Apply
AACSB:m Communication
AICPA:m BBIndustry;mFNReporting
5) Auditingtservicesandattestationtservicesarethesame.
ANSWER:mFALSEmDiffic
ulty:1Easy
Topic:m Auditing,mAttest,mandtAssurancetServicesmDefined mLear
ningmObjective:m01-
03mUnderstandtherelationshipsamongtauditing,mattestation,mandassuranceservices.
mBloom's:mUnderstand mAA
CSB:mCommunication
AICPA:m BBIndustry;mFNReporting
6) Auditingtisattypetofattest tservice.
ANSWER:mTRUEDifficu
mlty:1Easy
Topic:m Auditing,mAttest,mandtAssurancetServicesmDefined mLear
ningmObjective:m01-
03mUnderstandtherelationshipsamongtauditing,mattestation,mandassuranceservices.;m01-
m04mKnowthebasicdefinitionofafinancialmstatement maudit.
Bloom's:mUnderstand tAA m
CSB:mCommunication
AICPA:m BBIndustry;mFNReporting
7) Testingalltransactionstthatoccurredduringtthetperiodiscostprohibitive.
ANSWER:mTRUEDifficu
mlty:m2mMediumtTopic:mTh
emAuditProcessm m m Learn
ingmObjective:m01-
06m Betablettoexplainwhyonmostaudit tengagementsanauditortestsm onlyasampletoftransactionstha
m t moccurred.
Bloom's:m Apply
AACSB:m Communication
AICPA:m FNDecisionmMaking;mBBCriticalmThinking
m m m m m m m m m
Approach, 12th Edition m m m
Chapters 1 - 21 Complete
m m m m
,Chapter m1:mAnmIntroductionmtomAssurancemandmFinancialmStatementmAuditingmC
hapter m2:mThemFinancialmStatementmAuditingmEnvironment
Chapter m3:mAuditmPlanning,mTypesmofmAudittTests,mandmMateriality
m Chapter m4:mRiskmAssessment
Chapter m5:mEvidencetandmDocumentation
Chapter m6:mInternalmControlminmatFinancialmStatementtAuditmCha
pterm7:mAuditingmInternalmControlmovermFinancialmReporting
Chapter m8:mAuditmSampling:mAnmOverviewmandmApplicationmto mTestsmofmControlsmCh
apter m9:mAuditmSampling:mAnmApplicationmto mSubstantivemTestsmofmAccounttBalancesm
Chapter m10:mAuditingmthemRevenuemProcess
Chapter m11:mAuditingmthemPurchasingmProcess
Chapter m12:mAuditingmthemHumanmResourcemManagementmProces
smChapter m13:mAuditingmthemInventorymManagementmProcess
Chapter m14:mAuditingmthemFinancing/Investing mProcess:mPrepaidmExpenses,mIntangiblemAssets,ma
ndmProperty,mPlant,mandmEquipment
Chapter m15:mAuditingmthemFinancing/Investing mProcess:mLong-
TermmLiabilities,mStockholders’ mEquity,mandmIncomemStatementtAccountsmCha
pterm16:mAuditingmthemFinancing/Investing mProcess:mCashmandmInvestmentsmCh
apter m17:mCompletingtthemAudittEngagement
Chapter m18:mReportsmonmAuditedmFinancialmStatements
Chapter m19:mProfessionalmConduct,mIndependence,mandmQualitymManagementmC
hapter m20:mLegalmLiability
Chapter m21:mAssurance,mAttestation,mandmInternalmAuditingmServices
,Auditing&mAssurancetServices:mASystematicmApproach,m12et(Messier)mChapterm
1mAnmIntroductionmtomAssuranceandmFinancialmStatementtAuditing
1) Auditingtfocusesonrules,mtechniques,mandcomputationsrequiredtoprepareandanalyzefin m
ancialminformation.
ANSWER:mFALSEmDiffic
ulty:1Easy
Topic:mThemImportanceformStudyingmAuditingmL
earningmObjective:m01-
01mUnderstandwhystudyingauditingmcantbevaluablettoyoutwhetherornot tyouplantotbecomemanaud mit
or,tand twhymit tismdifferent tfrommstudyingaccounting.
Bloom's:mRemembermAAC
mSB:mCommunication
AICPA:m BBLegal;mFNDecisionmMaking
2) Decisiontmakersdemand treliableinformationthatisprovidedbyaccountants.
ANSWER:mTRUEDifficu
mlty:1Easy
Topic:m ThemDemandformAuditingand mAssurance
mLearningmObjective:m01-
02mUnderstand mthetdemandforauditingmandbeabletoexplaintthetdesired tcharacteristicsofauditorstamndauditservic
hroughtananalogytoahousetinspectorandahousetinspectionmservice.
Bloom's:mUnderstand mAAm
CSB:mCommunication
AICPA:m FNDecisiontMaking;mBBIndustry
3) Informationasymmetryseldomtoccurs.
ANSWER:mFALSEmDiffic
ulty:2tMedium
Topic:mThemDemandformAuditingtand mAssurance
mLearningmObjective:m01-
02mUnderstand mthetdemandforauditingmandbeabletoexplainmthetdesiredcharacteristicsofauditorstamndauditservic
hroughtananalogytoathousetinspectorand tahousetinspectionmservice.
Bloom's:m Apply
AACSB:m Communication
AICPA:m BBIndustry;mFNReporting
, 4) Conflictsofinterestoftenoccurbetweenabsenteeownersandmanagers.
ANSWER:mTRUEDifficu
mlty:2Medium
Topic:mThemDemandformAuditingtand mAssurance
mLearningmObjective:m01-
02mUnderstand tthetdemandforauditingmandbeabletoexplaintthetdesired tcharacteristicsofauditorstamndauditservic
hroughtananalogytoathousetinspectorand tahousetinspectionmservice.
Bloom's:m Apply
AACSB:m Communication
AICPA:m BBIndustry;mFNReporting
5) Auditingtservicesandattestationtservicesarethesame.
ANSWER:mFALSEmDiffic
ulty:1Easy
Topic:m Auditing,mAttest,mandtAssurancetServicesmDefined mLear
ningmObjective:m01-
03mUnderstandtherelationshipsamongtauditing,mattestation,mandassuranceservices.
mBloom's:mUnderstand mAA
CSB:mCommunication
AICPA:m BBIndustry;mFNReporting
6) Auditingtisattypetofattest tservice.
ANSWER:mTRUEDifficu
mlty:1Easy
Topic:m Auditing,mAttest,mandtAssurancetServicesmDefined mLear
ningmObjective:m01-
03mUnderstandtherelationshipsamongtauditing,mattestation,mandassuranceservices.;m01-
m04mKnowthebasicdefinitionofafinancialmstatement maudit.
Bloom's:mUnderstand tAA m
CSB:mCommunication
AICPA:m BBIndustry;mFNReporting
7) Testingalltransactionstthatoccurredduringtthetperiodiscostprohibitive.
ANSWER:mTRUEDifficu
mlty:m2mMediumtTopic:mTh
emAuditProcessm m m Learn
ingmObjective:m01-
06m Betablettoexplainwhyonmostaudit tengagementsanauditortestsm onlyasampletoftransactionstha
m t moccurred.
Bloom's:m Apply
AACSB:m Communication
AICPA:m FNDecisionmMaking;mBBCriticalmThinking
