TEST BANK FOR AUDITING & ASSURANCE SERVICES: A
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SYSTEMATIC APPROACH 12TH EDITION BY
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WILLIAM MESSIER, STEVEN GLOVER
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Chapter 01 i Answers Included ✅
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12e
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1) Why ido iauditors ioften iuse ia isampling iapproach ito ievidence igathering?
A) Auditors iare iexperts iand ido inot ineed ito ilook iat imuch ito iknow iwhether
ithe ifinancial istatements iare icorrect ior inot.
B) Auditors imust ibalance ithe icost iof ithe iaudit iwith ithe ineed ifor iprecision
iand ifor isome itypes iof ievidence, icomputer idata ianalytic iapproaches ican’t ibe iused.
C) Auditors imust ilimit itheir iexposure ito itheir iauditee ito imaintain iindependence.
D) The iauditor's irelationship iwith ithe iauditee iis igenerally iadversarial, iso ithe
iauditor iwill inot ihave iaccess ito iall iof ithe ifinancial iinformation iof ithe icompany.
2) Which iof ithe ifollowing istatements ibest idescribes ia irelationship ibetween
isample isize iand iother ielements iof iauditing?
A) If imateriality iincreases, iso iwill ithe isample isize.
B) If ithe idesired ilevel iof iassurance iincreases, isample isizes ican ibe ismaller.
C) If imateriality idecreases, isample isize iwill ineed ito iincrease.
D) There iis ino irelationship ibetween isample isize iand imateriality ior ithe
idesired ilevel iof iassurance.
3) Which iof ithe ifollowing istatements iabout ithe istudy iof iauditing iis iNOT itrue?
A) The istudy iof iauditing ican ibe ivaluable ito ifuture iaccountants iand
ibusiness idecision imakers iwhether ior inot ithey iplan ito ibecome iauditors.
B) The istudy iof iauditing ifocuses ion ilearning ithe ianalytical iand ilogical iskills
inecessary ito ievaluate ithe irelevance iand ireliability iof iinformation.
C) The istudy iof iauditing ifocuses ion ilearning ithe irules, itechniques, iand
icomputations irequired ito ianalyze ifinancial istatements ifor imaking iinvestment
irecommendations.
D) The istudy iof iauditing ibegins iwith ithe iunderstanding iof ia icoherent ilogical
iframework iand itechniques iuseful ifor igathering iand ianalyzing ievidence iabout iothers’
1
,assertions.
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4) The ibasic idefinition iof iauditing iessentially iindicates ithat, ioverall, iauditing iis ia iprocess ito:
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, A) detect ifraud.
B) examine iindividual itransactions iso ithat ithe iauditor imay icertify ias ito itheir
ivalidity.
C) objectively iobtain iand ievaluate ievidence iregarding iassertions imade iby
ianother iparty.
D) assure ithe iconsistent iapplication iof icorrect iaccounting iprocedures.
5) Assurance iservices imay iimprove iall iof ithe ifollowing iexcept:
A) relevance.
B) credibility.
C) periodicity.
D) reliability.
6) Evidence iis ireliable iif iit:
A) signals ithe itrue istate iof ia imanagement iassertion.
B) applies ito ithe iperiod ibeing iaudited.
C) relates ito ithe iaudit iassertion ibeing itested.
D) is isufficient ito ijustify ia iconclusion.
7) Which iof ithe ifollowing ibest idescribes ithe iconcept iof iaudit irisk?
A) The irisk iof ithe iauditor ibeing isued ibecause iof iassociation iwith ian iauditee.
B) The irisk ithat ithe iauditor iwill iprovide ian iinappropriate iopinion ion
ifinancial istatements ithat iare, iin ifact, imaterially imisstated.
C) The ioverall irisk ithat ia imaterial imisstatement iexists iin ithe ifinancial
istatements.
D) The irisk ithat iauditors iuse iaudit iprocedures ithat iare iinappropriate.
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, 8) An iauditor iwho iaccepts ian iaudit iengagement iand idoes inot ipossess iexpertise
iwith irespect ito ithe ibusiness ientity’s iindustry iat ithat ipoint, ishould:
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i i i i i i i
SYSTEMATIC APPROACH 12TH EDITION BY
i i i i i
WILLIAM MESSIER, STEVEN GLOVER
i i i i
Chapter 01 i Answers Included ✅
i i
12e
i
1) Why ido iauditors ioften iuse ia isampling iapproach ito ievidence igathering?
A) Auditors iare iexperts iand ido inot ineed ito ilook iat imuch ito iknow iwhether
ithe ifinancial istatements iare icorrect ior inot.
B) Auditors imust ibalance ithe icost iof ithe iaudit iwith ithe ineed ifor iprecision
iand ifor isome itypes iof ievidence, icomputer idata ianalytic iapproaches ican’t ibe iused.
C) Auditors imust ilimit itheir iexposure ito itheir iauditee ito imaintain iindependence.
D) The iauditor's irelationship iwith ithe iauditee iis igenerally iadversarial, iso ithe
iauditor iwill inot ihave iaccess ito iall iof ithe ifinancial iinformation iof ithe icompany.
2) Which iof ithe ifollowing istatements ibest idescribes ia irelationship ibetween
isample isize iand iother ielements iof iauditing?
A) If imateriality iincreases, iso iwill ithe isample isize.
B) If ithe idesired ilevel iof iassurance iincreases, isample isizes ican ibe ismaller.
C) If imateriality idecreases, isample isize iwill ineed ito iincrease.
D) There iis ino irelationship ibetween isample isize iand imateriality ior ithe
idesired ilevel iof iassurance.
3) Which iof ithe ifollowing istatements iabout ithe istudy iof iauditing iis iNOT itrue?
A) The istudy iof iauditing ican ibe ivaluable ito ifuture iaccountants iand
ibusiness idecision imakers iwhether ior inot ithey iplan ito ibecome iauditors.
B) The istudy iof iauditing ifocuses ion ilearning ithe ianalytical iand ilogical iskills
inecessary ito ievaluate ithe irelevance iand ireliability iof iinformation.
C) The istudy iof iauditing ifocuses ion ilearning ithe irules, itechniques, iand
icomputations irequired ito ianalyze ifinancial istatements ifor imaking iinvestment
irecommendations.
D) The istudy iof iauditing ibegins iwith ithe iunderstanding iof ia icoherent ilogical
iframework iand itechniques iuseful ifor igathering iand ianalyzing ievidence iabout iothers’
1
,assertions.
i
4) The ibasic idefinition iof iauditing iessentially iindicates ithat, ioverall, iauditing iis ia iprocess ito:
2
, A) detect ifraud.
B) examine iindividual itransactions iso ithat ithe iauditor imay icertify ias ito itheir
ivalidity.
C) objectively iobtain iand ievaluate ievidence iregarding iassertions imade iby
ianother iparty.
D) assure ithe iconsistent iapplication iof icorrect iaccounting iprocedures.
5) Assurance iservices imay iimprove iall iof ithe ifollowing iexcept:
A) relevance.
B) credibility.
C) periodicity.
D) reliability.
6) Evidence iis ireliable iif iit:
A) signals ithe itrue istate iof ia imanagement iassertion.
B) applies ito ithe iperiod ibeing iaudited.
C) relates ito ithe iaudit iassertion ibeing itested.
D) is isufficient ito ijustify ia iconclusion.
7) Which iof ithe ifollowing ibest idescribes ithe iconcept iof iaudit irisk?
A) The irisk iof ithe iauditor ibeing isued ibecause iof iassociation iwith ian iauditee.
B) The irisk ithat ithe iauditor iwill iprovide ian iinappropriate iopinion ion
ifinancial istatements ithat iare, iin ifact, imaterially imisstated.
C) The ioverall irisk ithat ia imaterial imisstatement iexists iin ithe ifinancial
istatements.
D) The irisk ithat iauditors iuse iaudit iprocedures ithat iare iinappropriate.
3
, 8) An iauditor iwho iaccepts ian iaudit iengagement iand idoes inot ipossess iexpertise
iwith irespect ito ithe ibusiness ientity’s iindustry iat ithat ipoint, ishould:
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