TEST BANK For Auditing & Assurance Services: A Systematic Approach, 12th Edition Chapters 1 - 21 Complete

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

Chapters 1 - 21 Complete

,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,
and 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: A Systematic Approach, 12e (Messier)
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Chapter 1 An Introduction to Assurance and Financial Statement Auditing
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1) Auditing focuses on rules, techniques, and computations required to prepare and analyz
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e financial information.
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ANSWER: FALSE m n



Difficulty: 1 Easy mn mn



Topic: The Importance for Studying Auditing
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Learning Objective: 01- mn mn



01 Understand why studying auditing can be valuable to you whether or not you plan to beco
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me an auditor, and why it is different from studying accounting.
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Bloom's: Remember AA mn mn



CSB: Communication
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AICPA: BB Legal; FN Decision Making
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2) Decision makers demand reliable information that is provided by accountants.
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ANSWER: TRUE m n



Difficulty: 1 Easy mn mn



Topic: The Demand for Auditing and Assurance
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Learning Objective: 01- mn mn



02 Understand the demand for auditing and be able to explain the desired characteristics of au
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ditors and audit services through an analogy to a house inspector and a house inspection service
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Bloom's: Understand AA mn mn



CSB: Communication
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AICPA: FN Decision Making; BB Industry
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3) Information asymmetry seldom occurs. mn mn mn




ANSWER: FALSE m n



Difficulty: 2 Medium mn mn



Topic: The Demand for Auditing and Assurance
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Learning Objective: 01- mn mn



02 Understand the demand for auditing and be able to explain the desired characteristics of au
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ditors and audit services through an analogy to a house inspector and a house inspection service
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Bloom's: Apply m n



AACSB: Communication m n



AICPA: BB Industry; FN Reporting
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, 4) Conflicts of interest often occur between absentee owners and managers.
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ANSWER: TRUE m n



Difficulty: 2 Medium mn mn



Topic: The Demand for Auditing and Assurance
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Learning Objective: 01- mn mn



02 Understand the demand for auditing and be able to explain the desired characteristics of au
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ditors and audit services through an analogy to a house inspector and a house inspection service
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.
Bloom's: Apply m n



AACSB: Communication m n



AICPA: BB Industry; FN Reporting
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5) Auditing services and attestation services are the same.
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ANSWER: FALSE m n



Difficulty: 1 Easy mn mn



Topic: Auditing, Attest, and Assurance Services Defined
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Learning Objective: 01- mn m n



03 Understand the relationships among auditing, attestation, and assurance services.
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Bloom's: Understand AA mn mn



CSB: Communication
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AICPA: BB Industry; FN Reporting
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6) Auditing is a type of attest service. mn mn mn mn mn mn




ANSWER: TRUE m n



Difficulty: 1 Easy mn mn



Topic: Auditing, Attest, and Assurance Services Defined
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Learning Objective: 01- mn m n



03 Understand the relationships among auditing, attestation, and assurance services.; 01
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-04 Know the basic definition of a financial statement audit.
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Bloom's: Understand AA mn mn



CSB: Communication
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AICPA: BB Industry; FN Reporting
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7) Testing all transactions that occurred during the period is cost prohibitive.
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ANSWER: TRUE m n



Difficulty: 2 Medium To mn mn mn



pic: The Audit Process
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Learning Objective: 01- mn m n



06 Be able to explain why on most audit engagements an auditor tests only a sample of transact
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ions that occurred.
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Bloom's: Apply m n



AACSB: Communication m n



AICPA: FN Decision Making; BB Critical Thinking
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