Auditing,&,Assurance,Services
TEST BANK
, ,
Auditing,&,Assurance,Services:,A,Systematic,A
pproach,,11th,Edition,Chapters,1,-,21,
,Auditing,&,Assurance,Services
Chapter,1:,An,Introduction,to,Assurance,and,Financial,Statement,Auditing
Chapter,2:,The,Financial,Statement,Auditing,Environment
Chapter,3:,Audit,Planning,,Types,of,Audit,Tests,,and,Materiality
Chapter,4:,Risk,Assessment
Chapter,5:,Evidence,and,Documentation
Chapter,6:,Internal,Control,in,a,Financial,Statement,Audit
Chapter,7:,Auditing,Internal,Control,over,Financial,Reporting
Chapter,8:,Audit,Sampling:,An,Overview,and,Application,to,Tests,of,Controls
Chapter,9:,Audit,Sampling:,An,Application,to,Substantive,Tests,of,Account,Balances
Chapter,10:,Auditing,the,Revenue,Process
Chapter,11:,Auditing,the,Purchasing,Process
Chapter,12:,Auditing,the,Human,Resource,Management,Process
Chapter,13:,Auditing,the,Inventory,Management,Process
Chapter,14:,Auditing,the,Financing/Investing,Process:,Prepaid,Expenses,,Intangible,Assets,,an
d,Property,,Plant,,and,Equipment
Chapter,15:,Auditing,the,Financing/Investing,Process:,Long-
Term,Liabilities,,Stockholders’,Equity,,and,Income,Statement,Accounts
Chapter,16:,Auditing,the,Financing/Investing,Process:,Cash,and,Investments
Chapter,17:,Completing,the,Audit,Engagement
Chapter,18:,Reports,on,Audited,Financial,Statements
Chapter,19:,Professional,Conduct,,Independence,,and,Quality,Management
Chapter,20:,Legal,Liability
Chapter,21:,Assurance,,Attestation,,and,Internal,Auditing,Services
,Auditing,&,Assurance,Services
Chapter, 01,
An, Introduction, to, Assurance, and, Financial, Statement, Auditing
True, /, False, Questions
1. Independence, standards , are, required, for, audits, of, public, companies,, but, not, for, aud
its,of,private,companies.
True False
2. Decision, makers, demand, reliable, information, that, is, provided, by, accountants.
True False
3. Information, asymmetry, seldom, occurs.
True False
4. Conflicts, of, interest, often, occur, between, absentee, owners, and, managers.
True False
5. Auditing, services, and, attestation, services, are, the, same.
True False
6. Auditing,is,a,type,of,attest,service.
True False
7. Testing,all,transactions,that,occurred,during,the,period,is,cost,prohibitive.
True False
Multiple,Choice,Questions
, Auditing,&,Assurance,Services
8. Why,do,auditors,generally,use,a,sampling,approach,to,evidence,gathering?
A. Auditors, are,experts, and,do,not,need,to,look,at,much,to,know,whether,the,finan
cial,statements,are,correct,or,not.
B. Auditors, must,balance,the,cost,of,the,audit,with,the,need,
for,precision.
C. Auditors,must,limit,their,exposure,to,their,auditee,to,mainta
in,independence.
D. The,auditor's,relationship,with,the,auditee,is,generally,adversarial,,so,the,auditor,
will,not,have,access,to,all,of,the,financial,information,of,the,company.
9. Which, of, the, following, statements, best, describes, a, relationship, between, sample, size, a
nd,other,elements,of,auditing?
A. If, materiality, increases,, so, will, th
e,sample,size.
B. If, the, desired, level, of, assurance, increases,, sample, sizes, can,
be,smaller.
C. If,materiality,decreases,,sample,size,will,need,
to,increase.
D. There,is,no,relationship, between,sample,size, and, materiality,or,the, desired,le
vel,of,assurance.
10. Which, of,the, following, statements, about, the, study, of, auditing, is,NOT, true?
A. The, study, of, auditing, can, be, valuable, to, future, accountants , and, business, decisi
on,makers,whether,or,not,they,plan,to,become,auditors.
B. The, study, of, auditing, focuses, on, learning, the, analytical, and, logical, skills, necessary
, to,evaluate,the,relevance,and,reliability,of,information.
C. The, study, of, auditing, focuses, on, learning, the, rules,, techniques,, and, computatio
ns,required,to,analyze,financial,statements.
D. The, study, of, auditing, begins, with, the, understanding, of, a,coherent, logical, framewo
rk,and,techniques,useful,for,gathering,and,analyzing,evidence,about,others',assert
ions.
11. The,basic,purpose,of,a,financial,statement,audit,is,to
A. Detect
,fraud.
B. Examine, individual, transactions , so, that, the, auditor, may, certify, as,
to,their,validity.
C. Provide, assurance, regarding, whether, the, auditee's, financial, statements, a
re,fairly,stated.
D. Assure, the, consistent, application, of, correct, accountin
g,procedures.
TEST BANK
, ,
Auditing,&,Assurance,Services:,A,Systematic,A
pproach,,11th,Edition,Chapters,1,-,21,
,Auditing,&,Assurance,Services
Chapter,1:,An,Introduction,to,Assurance,and,Financial,Statement,Auditing
Chapter,2:,The,Financial,Statement,Auditing,Environment
Chapter,3:,Audit,Planning,,Types,of,Audit,Tests,,and,Materiality
Chapter,4:,Risk,Assessment
Chapter,5:,Evidence,and,Documentation
Chapter,6:,Internal,Control,in,a,Financial,Statement,Audit
Chapter,7:,Auditing,Internal,Control,over,Financial,Reporting
Chapter,8:,Audit,Sampling:,An,Overview,and,Application,to,Tests,of,Controls
Chapter,9:,Audit,Sampling:,An,Application,to,Substantive,Tests,of,Account,Balances
Chapter,10:,Auditing,the,Revenue,Process
Chapter,11:,Auditing,the,Purchasing,Process
Chapter,12:,Auditing,the,Human,Resource,Management,Process
Chapter,13:,Auditing,the,Inventory,Management,Process
Chapter,14:,Auditing,the,Financing/Investing,Process:,Prepaid,Expenses,,Intangible,Assets,,an
d,Property,,Plant,,and,Equipment
Chapter,15:,Auditing,the,Financing/Investing,Process:,Long-
Term,Liabilities,,Stockholders’,Equity,,and,Income,Statement,Accounts
Chapter,16:,Auditing,the,Financing/Investing,Process:,Cash,and,Investments
Chapter,17:,Completing,the,Audit,Engagement
Chapter,18:,Reports,on,Audited,Financial,Statements
Chapter,19:,Professional,Conduct,,Independence,,and,Quality,Management
Chapter,20:,Legal,Liability
Chapter,21:,Assurance,,Attestation,,and,Internal,Auditing,Services
,Auditing,&,Assurance,Services
Chapter, 01,
An, Introduction, to, Assurance, and, Financial, Statement, Auditing
True, /, False, Questions
1. Independence, standards , are, required, for, audits, of, public, companies,, but, not, for, aud
its,of,private,companies.
True False
2. Decision, makers, demand, reliable, information, that, is, provided, by, accountants.
True False
3. Information, asymmetry, seldom, occurs.
True False
4. Conflicts, of, interest, often, occur, between, absentee, owners, and, managers.
True False
5. Auditing, services, and, attestation, services, are, the, same.
True False
6. Auditing,is,a,type,of,attest,service.
True False
7. Testing,all,transactions,that,occurred,during,the,period,is,cost,prohibitive.
True False
Multiple,Choice,Questions
, Auditing,&,Assurance,Services
8. Why,do,auditors,generally,use,a,sampling,approach,to,evidence,gathering?
A. Auditors, are,experts, and,do,not,need,to,look,at,much,to,know,whether,the,finan
cial,statements,are,correct,or,not.
B. Auditors, must,balance,the,cost,of,the,audit,with,the,need,
for,precision.
C. Auditors,must,limit,their,exposure,to,their,auditee,to,mainta
in,independence.
D. The,auditor's,relationship,with,the,auditee,is,generally,adversarial,,so,the,auditor,
will,not,have,access,to,all,of,the,financial,information,of,the,company.
9. Which, of, the, following, statements, best, describes, a, relationship, between, sample, size, a
nd,other,elements,of,auditing?
A. If, materiality, increases,, so, will, th
e,sample,size.
B. If, the, desired, level, of, assurance, increases,, sample, sizes, can,
be,smaller.
C. If,materiality,decreases,,sample,size,will,need,
to,increase.
D. There,is,no,relationship, between,sample,size, and, materiality,or,the, desired,le
vel,of,assurance.
10. Which, of,the, following, statements, about, the, study, of, auditing, is,NOT, true?
A. The, study, of, auditing, can, be, valuable, to, future, accountants , and, business, decisi
on,makers,whether,or,not,they,plan,to,become,auditors.
B. The, study, of, auditing, focuses, on, learning, the, analytical, and, logical, skills, necessary
, to,evaluate,the,relevance,and,reliability,of,information.
C. The, study, of, auditing, focuses, on, learning, the, rules,, techniques,, and, computatio
ns,required,to,analyze,financial,statements.
D. The, study, of, auditing, begins, with, the, understanding, of, a,coherent, logical, framewo
rk,and,techniques,useful,for,gathering,and,analyzing,evidence,about,others',assert
ions.
11. The,basic,purpose,of,a,financial,statement,audit,is,to
A. Detect
,fraud.
B. Examine, individual, transactions , so, that, the, auditor, may, certify, as,
to,their,validity.
C. Provide, assurance, regarding, whether, the, auditee's, financial, statements, a
re,fairly,stated.
D. Assure, the, consistent, application, of, correct, accountin
g,procedures.
