Test Bank For Auditing & Assurance Services: A Systematic Approach 12TH Edition, by Douglas F. Prawitt William ||ISBN:9781265019624

MEDSTUDY.COM


TEST BANK For Auditing & Assurance Services: A
Systematic Approach, 12th Edition by Messier

Chapters 1 - 21 Complete
M
ED
ST
U
D
Y

,MEDSTUDY.COM




Chapter 1: An Introductionto Assuranceand Financial Statement Auditing

Chapter 2: The Financial Statement Auditing Environment

Chapter 3: Audit Planning,lTypesofAudit Tests,land Materiality

Chapter 4: Risk Assessment
M
Chapter 5: Evidenceand Documentation

Chapter 6: Internal Controlina Financial StatementlAudit
ED

Chapter 7: Auditing Internal Controlover Financial Reporting

Chapter 8: AuditlSampling: An Overviewand Applicationto TestsofControls

Chapter 9: AuditlSampling: An ApplicationtolSubstantive TestsloflAccount Balances
ST

Chapter 10: Auditingthe Revenue Process

Chapter 11: Auditingthe Purchasing Process
U
Chapter 12: Auditingthe Human Resource Management Process

Chapter 13: Auditingthe Inventory Management Process
D
Chapter 14: Auditingthe Financing/Investing Process:lPrepaid Expenses, IntangiblelAssets, and Property,
Plant,land Equipment
Y
Chapter 15: Auditingthe Financing/Investing Process:lLong-
Term Liabilities, Stockholders’ Equity, and Income Statement Accounts

Chapter 16: Auditingthe Financing/Investing Process:lCashand Investments

Chapter 17: Completingthe Audit Engagement

Chapter 18: Reportson Audited Financial Statements

Chapter 19: Professional Conduct, Independence, and Quality Management

Chapter 20: Legal Liability

,MEDSTUDY.COM

Chapter 21: Assurance, Attestation, and Internal Auditing Services


Auditing& Assurance Services: ASystematic Approach,l12e(Messier) Chapter 1 An Intr
oductionto Assuranceand Financial Statement Auditing

1) Auditingfocusesonrules,ltechniques,andcomputationslrequiredtoprepareandanalyzefinan
cialinformation.

ANSWER:l FALSElDifficulty:
1Easy
Topic: TheImportanceforStudying Auditing
Learning Objective: 01-
01Understandwhystudyingauditingcanbevaluabletoyouwhetherornotlyouplantolbecomeanaudit
M
or, andwhyitlisdifferentfromstudyingaccounting.
Bloom's: Remember AACSB
: Communication
AICPA: BBLegal;FNDecisionMaking
ED
2) Decisionmakersdemandreliableinformationthatislprovidedbyaccountants.

ANSWER:l TRUEDifficulty:
1Easy
Topic: The DemandforAuditingand Assurance
ST
Learning Objective: 01-
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa
ndauditserviceslthroughananalogytoahouseinspectorandahouseinspectionservice.
Bloom's: Understand AACS
B:l Communication
AICPA: FNDecision Making;BBIndustry
U

3) Informationasymmetryseldomoccurs.
D
ANSWER:l FALSElDifficulty:
2Medium
Topic: The DemandforAuditingand Assurance
Y
Learning Objective: 01-
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa
ndauditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
Bloom's: Apply
AACSB: Communication
AICPA: BBIndustry; FNReporting

,MEDSTUDY.COM


4) Conflictslofinterestoftenoccurbetweenlabsenteeownerslandmanagers.

ANSWER:l TRUEDifficulty:
2Medium
Topic: The DemandforAuditingand Assurance
Learning Objective: 01-
02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa
ndauditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
Bloom's: Apply
AACSB: Communication
AICPA: BBIndustry; FNReporting

5) Auditingserviceslandattestationserviceslarethelsame.
M
ANSWER:l FALSElDifficulty:
1Easy
Topic: Auditing, Attest,andAssurance ServicesDefined
LearningObjective: 01-
ED
03Understandtherelationshipsamongauditing,lattestation,andassuranceservices.
Bloom's: Understand AACS
B: Communication
AICPA: BBIndustry; FNReporting

6) Auditingisatypeofattestservice.
ST
ANSWER:l TRUEDifficulty:
1Easy
Topic: Auditing, Attest,landAssurance ServicesDefined
LearningObjective: 01-
U
03Understandtherelationshipsamongauditing,lattestation,landassuranceservices.;l01-
04Knowthebasicdefinitionofafinancialstatementaudit.
Bloom's: Understand AACS
B:l Communication
D
AICPA: BBIndustry; FNReporting

7) Testingalltransactionsthatloccurredduringtheperiodislcostlprohibitive.
Y

ANSWER:l TRUEDifficulty:
2 Medium Topic: TheAuditP
rocess
Learning Objective: 01-
06Beableltoexplainwhyonmostauditengagementsanauditortestslonlyasampleoftransactionsthat
occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FNDecisionMaking;BBCritical Thinking