1|Page
,TEST BANK for Auditing A Practical Approach,
4th Canadian Edition Author:Moroney,
Campbell, Warren. All Chapters[1-14] With
Verified Questions And Answers 100% Complete
A+ Study Guide Newest Version 2025
WRITTEN BY KYLIEPERFECT
2|Page
, CHAPTER 1
INTRODUCTION AND OVERVIEW OF AUDIT AND
ASSURANCE
CHAPTER LEARNING OBJECTIVES
1. Define An Assurance Engagement.
An Assurance Engagement Involves An Assurance Provider Arriving
Atan Opinion About Some Information Being Provided By Their Client
Toa Third Party. A Financial Statement Audit Is One Type Of
Assuranceengagement. This Engagement Involves An Auditor Arriving
At An Opinionabout The Fair Presentation Of The Financial
Statements. The Auditreport Is Addressed To The Shareholders Of The
Company Being Audited,But Other Users May Read The Financial
Statements. Learning Aboutauditing And Assurance Requires An
Understanding Of Auditing Andassurance Terminology, Including
Terms Such As Audit Risk, Materiality,Internal Controls, Listed Entity,
And Assertions.
2. Explain Why There Is A Demand For Audit And Assurance Services.
Financial Statement Users Include Investors (Shareholders),
Suppliers,Customers, Lenders, Employees, Governments, And The General
Public.These Groups Of Users Demand Audited Financial Statements
Because Oftheir Remoteness From The Entity, Accounting Complexity,
Theirincentivescompeting With Those Of The Entity‘S Managers, And
Their Needfor Reliable Information On Which To Base Decisions. The
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, Theories Usedto Describe The Demand For Audit And Assurance Services
Are Agencytheory, The Information Hypothesis, And The Insurance
Hypothesis.
3. Differentiate Between Types Of Assurance Services.
Assurance Services Include Financial Statement Audits,
Complianceaudits, Performance Audits, Comprehensive Audits, Internal
Audits,And Assurance On Corporate Social Responsibility (CSR)
Disclosures.
4. Explain The Different Levels Of Assurance.
The Different Levels Of Assurance Include Reasonable Assurance, Whichis
The Highest Level Of Assurance, Limited Assurance, And No
Assurance.Reasonable Assurance Is Provided On An Audit Of A
Company‘Sfinancial Statements. Limited Assurance Is Provided In A
Review Of
4|Page
,TEST BANK for Auditing A Practical Approach,
4th Canadian Edition Author:Moroney,
Campbell, Warren. All Chapters[1-14] With
Verified Questions And Answers 100% Complete
A+ Study Guide Newest Version 2025
WRITTEN BY KYLIEPERFECT
2|Page
, CHAPTER 1
INTRODUCTION AND OVERVIEW OF AUDIT AND
ASSURANCE
CHAPTER LEARNING OBJECTIVES
1. Define An Assurance Engagement.
An Assurance Engagement Involves An Assurance Provider Arriving
Atan Opinion About Some Information Being Provided By Their Client
Toa Third Party. A Financial Statement Audit Is One Type Of
Assuranceengagement. This Engagement Involves An Auditor Arriving
At An Opinionabout The Fair Presentation Of The Financial
Statements. The Auditreport Is Addressed To The Shareholders Of The
Company Being Audited,But Other Users May Read The Financial
Statements. Learning Aboutauditing And Assurance Requires An
Understanding Of Auditing Andassurance Terminology, Including
Terms Such As Audit Risk, Materiality,Internal Controls, Listed Entity,
And Assertions.
2. Explain Why There Is A Demand For Audit And Assurance Services.
Financial Statement Users Include Investors (Shareholders),
Suppliers,Customers, Lenders, Employees, Governments, And The General
Public.These Groups Of Users Demand Audited Financial Statements
Because Oftheir Remoteness From The Entity, Accounting Complexity,
Theirincentivescompeting With Those Of The Entity‘S Managers, And
Their Needfor Reliable Information On Which To Base Decisions. The
3|Page
, Theories Usedto Describe The Demand For Audit And Assurance Services
Are Agencytheory, The Information Hypothesis, And The Insurance
Hypothesis.
3. Differentiate Between Types Of Assurance Services.
Assurance Services Include Financial Statement Audits,
Complianceaudits, Performance Audits, Comprehensive Audits, Internal
Audits,And Assurance On Corporate Social Responsibility (CSR)
Disclosures.
4. Explain The Different Levels Of Assurance.
The Different Levels Of Assurance Include Reasonable Assurance, Whichis
The Highest Level Of Assurance, Limited Assurance, And No
Assurance.Reasonable Assurance Is Provided On An Audit Of A
Company‘Sfinancial Statements. Limited Assurance Is Provided In A
Review Of
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