Test Bank for Auditing A Risk-Based Approach to Conducting a Quality Audit 12th Edition by Karla Johnstone-Zehms, ISBN: 9780357721872

Test Bank Auditing A Risk-Based Approach To Conducting a Quality Audit 12e By Zehms
Chapter - 01
1. The Need For Independent Assurance Arises Because The Interests Of The Users Of Information May Be
Different From The Interests Of Those Responsible For Providing Information.
a. True
b. False
Answer: True
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 4:48 AM
Date Modified: 5/26/2023 4:49 AM

2. A Financial Statement Audit Is a Systematic Process Of Objectively Obtaining And Evaluating Evidence.
a. True
b. False
Answer: True
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 4:59 Am
Date Modified: 5/26/2023 5:00 Am

3. A Bank Using Milton Company's Financial Statements To Evaluate Milton’s Loan Application Is An
Example Of a User’s Need For Unbiased Reporting.
a. True
b. False
Answer: True
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:01 AM
Date Modified: 5/26/2023 5:02 AM

4. An Integrated Audit Requires The Auditor To Assess The Effectiveness Of Internal Controls.
Page 1

,Chapter 01
a. True
b. False
Answer: True
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:02 AM
Date Modified: 5/26/2023 5:03 AM

5. Auditors Obtain And Evaluate Evidence Regarding Assertions About Economic Actions And Events To
Verify The Accuracy Of Those Assertions.
a. True
b. False
Answer: False
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:03 AM
Date Modified: 5/26/2023 5:04 AM

6. Auditing Is The Process Of Verifying And Assuring The Complete Accuracy Of The Financial Statements.
a. True
b. False
Answer: False
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:04 AM
Date Modified: 5/26/2023 5:05 AM

7. Management May Have Incentives To Present Biased Financial Information, But The Various Users
Of The Statements Are Likely To Have The Same Interest In The Financial Information.
a. True
Page 2

,Chapter 01
b. False
Answer: False
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:05 AM
Date Modified: 5/26/2023 5:06 AM

8. Auditing Exists Because Users Need Unbiased Information On Which To Assess Management
Performance And Make Economic Decisions.
a. True
b. False
Answer: True
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:06 AM
Date Modified: 5/26/2023 5:07 AM

9. Users Rely On The Auditors' Independent Assessment Of Financial Statement Presentation Because
Few Users Have Direct Knowledge Of The Company's Operations.
a. True
b. False
Answer: True
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:07 AM
Date Modified: 5/26/2023 5:08 AM

10. If The Auditor Has No Reservations About Management’s Financial Statements, Then The Auditor
Will Issue a Qualified Opinion.
a. True
Page 3

, Chapter 01
b. False
Answer: False
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:08 AM
Date Modified: 5/26/2023 5:09 AM

11. Independence Is Often Referred To As The Cornerstone Of The Auditing Profession.
a. True
b. False
Answer: True
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:09 AM
Date Modified: 5/26/2023 5:11 AM

12. Auditors Generally Need Quantitative And Mathematical Skills More Than They Need
Communication And Leadership Skills.
a. True
b. False
Answer: False
Points: 1
Question Type: True / False
Has Variables: False
Learning Objectives: AUD.ZEHMS.24.01.01 - Define Financial Statement Auditing In Relation To Decision Makers’
Demands For Reliable Financial And Internal Control Information
National Standards: United States - Busprog: Comprehension State
Standards: United States - AK - AICPA BP-Critical
Thinking Date Created: 5/26/2023 5:11 AM
Date Modified: 5/26/2023 5:12 AM

13. The Overall Objective Of An Audit Is To Guarantee The Financial Statements Are Free Of Misstatement.
a. True
b. False
Answer: False
Page 4