TEST BANK For Auditing & Assurance Services: A Systematic Approach

TEST BANK For Auditing & Assurance Services: A
Systematic Approach, 12th Edition
Chapters 1 - 21 Complete

,Chapterz1:zAnzIntroductionztozAssurancezandzFinancialzStatementzAuditingzCh

apterz2:zThezFinancialzStatementzAuditingzEnvironment

Chapterz3:zAuditzPlanning,zTypeszofzAudittTests,zandzMaterialityz

Chapterz4:zRiskzAssessment

Chapterz5:zEvidencetandzDocumentation

Chapterz6:zInternalzControlzinzatFinancialzStatementtAuditzCha

pterz7:zAuditingzInternalzControlzoverzFinancialzReporting

Chapterz8:zAuditzSampling:zAnzOverviewzandzApplicationztozTestszofzControlszCha

pterz9:zAuditzSampling:zAnzApplicationztozSubstantivezTestszofzAccounttBalanceszCh

apterz10:zAuditingzthezRevenuezProcess

Chapterz11:zAuditingzthezPurchasingzProcess

Chapterz12:zAuditingzthezHumanzResourcezManagementzProcess

zChapterz13:zAuditingzthezInventoryzManagementzProcess


Chapterz14:zAuditingzthezFinancing/InvestingzProcess:zPrepaidzExpenses,zIntangiblezAssets,zan
dzProperty,zPlant,zandzEquipment

Chapterz15:zAuditingzthezFinancing/InvestingzProcess:zLong-
TermzLiabilities,zStockholders’zEquity,zandzIncomezStatementtAccountszChap

terz16:zAuditingzthezFinancing/InvestingzProcess:zCashzandzInvestmentszChap

terz17:zCompletingtthezAudittEngagement

Chapterz18:zReportszonzAuditedzFinancialzStatements

Chapterz19:zProfessionalzConduct,zIndependence,zandzQualityzManagementzC

hapterz20:zLegalzLiability

Chapterz21:zAssurance,zAttestation,zandzInternalzAuditingzServices

,Auditing&zAssurancetServices:zASystematiczApproach,z12et(Messier)zChapterz1
zAnzIntroductionztozAssuranceandzFinancialzStatementtAuditing


1) Auditingtfocusesonrules,ztechniques,zandcomputationsrequiredtoprepareandanalyzefinza
ncialzinformation.

ANSWER:zFALSEzDiffic
ulty:1Easy
Topic:zThezImportanceforzStudyingzAuditingzL
earningzObjective:z01-
01zUnderstandwhystudyingauditingzcantbevaluablettoyoutwhetherornottyouplantotbecomezanaudzit
or,tandtwhyzittiszdifferenttfromzstudyingaccounting.
Bloom's:zRememberzAAC
zSB:zCommunication
AICPA:z BBLegal;zFNDecisionzMaking

2) Decisiontmakersdemandtreliableinformationthatisprovidedbyaccountants.

ANSWER:zTRUEDifficu
zlty:1Easy
Topic:z ThezDemandforzAuditingandzAssurance
zLearningzObjective:z01-
02zUnderstandzthetdemandforauditingzandbeabletoexplaintthetdesiredtcharacteristicsofauditorstazndauditservice
hroughtananalogytoahousetinspectorandahousetinspectionzservice.
Bloom's:zUnderstandzAAz
CSB:zCommunication
AICPA:z FNDecisiontMaking;zBBIndustry

3) Informationasymmetryseldomtoccurs.

ANSWER:zFALSEzDiffic
ulty:2tMedium
Topic:zThezDemandforzAuditingtandzAssurance
zLearningzObjective:z01-
02zUnderstandzthetdemandforauditingzandbeabletoexplainzthetdesiredcharacteristicsofauditorstazndauditservic
hroughtananalogytoathousetinspectorandtahousetinspectionzservice.
Bloom's:z Apply
AACSB:z Communication
AICPA:z BBIndustry;zFNReporting

, 4) Conflictsofinterestoftenoccurbetweenabsenteeownersandmanagers.

ANSWER:zTRUEDifficu
zlty:2Medium
Topic:zThezDemandforzAuditingtandzAssurance
zLearningzObjective:z01-
02zUnderstandtthetdemandforauditingzandbeabletoexplaintthetdesiredtcharacteristicsofauditorstazndauditservice
roughtananalogytoathousetinspectorandtahousetinspectionzservice.
Bloom's:z Apply
AACSB:z Communication
AICPA:z BBIndustry;zFNReporting

5) Auditingtservicesandattestationtservicesarethesame.

ANSWER:zFALSEzDiffic
ulty:1Easy
Topic:z Auditing,zAttest,zandtAssurancetServiceszDefinedzLear
ningzObjective:z01-
03zUnderstandtherelationshipsamongtauditing,zattestation,zandassuranceservices.z
Bloom's:zUnderstandzAA
CSB:zCommunication
AICPA:z BBIndustry;zFNReporting

6) Auditingtisattypetofattesttservice.

ANSWER:zTRUEDifficu
zlty:1Easy
Topic:z Auditing,zAttest,zandtAssurancetServiceszDefinedzLear
ningzObjective:z01-
03zUnderstandtherelationshipsamongtauditing,zattestation,zandassuranceservices.;z01-
z04zKnowthebasicdefinitionofafinancialzstatementzaudit.
Bloom's:zUnderstandtAAz
CSB:zCommunication
AICPA:z BBIndustry;zFNReporting

7) Testingalltransactionstthatoccurredduringtthetperiodiscostprohibitive.

ANSWER:zTRUEDifficu
zlty:z2zMediumtTopic:zTh
ezAuditProcessz z z Learn
ingzObjective:z01-
06z Betablettoexplainwhyonmostaudittengagementsanauditortestsz onlyasampletoftransactionstha
z tzoccurred.
Bloom's:z Apply
AACSB:z Communication
AICPA:z FNDecisionzMaking;zBBCriticalzThinking