TEST BANK FOR AUDITING &ASSURANCE SERVICES FOR A SYSTEMATIC APPROACH, 12TH EDITION CHAPTERS 1-21 COMPLETE

TEST BANK For Auditing & Assurance Services: A Systematic A
h h h h h h h h h




pproach, 12th Edition h h h




Chapters 1 - 21 Complete
h h h h

,Chapterh1:hAnhIntroductionhtohAssurancehandhFinancialhStatementhAuditinghCha

pterh2:hThehFinancialhStatementhAuditinghEnvironment

Chapterh3:hAudithPlanning,hTypeshofhAudittTests,handhMaterialityhC

hapterh4:hRiskhAssessment

Chapterh5:hEvidencetandhDocumentation

Chapterh6:hInternalhControlhinhatFinancialhStatementtAudithChapt

erh7:hAuditinghInternalhControlhoverhFinancialhReporting

Chapterh8:hAudithSampling:hAnhOverviewhandhApplicationhtohTestshofhControlshChapt

erh9:hAudithSampling:hAnhApplicationhtohSubstantivehTestshofhAccounttBalanceshChapt

erh10:hAuditinghthehRevenuehProcess

Chapterh11:hAuditinghthehPurchasinghProcess

Chapterh12:hAuditinghthehHumanhResourcehManagementhProcessh

Chapterh13:hAuditinghthehInventoryhManagementhProcess

Chapterh14:hAuditinghthehFinancing/InvestinghProcess:hPrepaidhExpenses,hIntangiblehAssets,hand
hProperty,hPlant,handhEquipment




Chapterh15:hAuditinghthehFinancing/InvestinghProcess:hLong-
TermhLiabilities,hStockholders’hEquity,handhIncomehStatementtAccountshChapt

erh16:hAuditinghthehFinancing/InvestinghProcess:hCashhandhInvestmentshChapte

rh17:hCompletingtthehAudittEngagement

Chapterh18:hReportshonhAuditedhFinancialhStatements

Chapterh19:hProfessionalhConduct,hIndependence,handhQualityhManagementhCha

pterh20:hLegalhLiability

Chapterh21:hAssurance,hAttestation,handhInternalhAuditinghServices

,Auditing&hAssurancetServices:hASystematichApproach,h12et(Messier)hChapterh1h
AnhIntroductionhtohAssuranceandhFinancialhStatementtAuditing

1) Auditingtfocusesonrules,htechniques,handcomputationsrequiredtoprepareandanalyzefinha
ncialhinformation.

ANSWER:hFALSEhDiffic
ulty:1Easy
Topic:hThehImportanceforhStudyinghAuditinghLe
arninghObjective:h01-
01hUnderstandwhystudyingauditinghcantbevaluablettoyoutwhetherornottyouplantotbecomehanaudhito
r,tandtwhyhittishdifferenttfromhstudyingaccounting.
Bloom's:hRememberhAACh
SB:hCommunication
AICPA:h BBLegal;hFNDecisionhMaking

2) Decisiontmakersdemandtreliableinformationthatisprovidedbyaccountants.

ANSWER:hTRUEDifficuh
lty:1Easy
Topic:h ThehDemandforhAuditingandhAssuranceh
LearninghObjective:h01-
02hUnderstandhthetdemandforauditinghandbeabletoexplaintthetdesiredtcharacteristicsofauditorstahndauditservice
roughtananalogytoahousetinspectorandahousetinspectionhservice.
Bloom's:hUnderstandhAAh
CSB:hCommunication
AICPA:h FNDecisiontMaking;hBBIndustry

3) Informationasymmetryseldomtoccurs.

ANSWER:hFALSEhDiffic
ulty:2tMedium
Topic:hThehDemandforhAuditingtandhAssuranceh
LearninghObjective:h01-
02hUnderstandhthetdemandforauditinghandbeabletoexplainhthetdesiredcharacteristicsofauditorstahndauditservices
roughtananalogytoathousetinspectorandtahousetinspectionhservice.
Bloom's:h Apply
AACSB:h Communication
AICPA:h BBIndustry;hFNReporting

, 4) Conflictsofinterestoftenoccurbetweenabsenteeownersandmanagers.

ANSWER:hTRUEDifficuh
lty:2Medium
Topic:hThehDemandforhAuditingtandhAssuranceh
LearninghObjective:h01-
02hUnderstandtthetdemandforauditinghandbeabletoexplaintthetdesiredtcharacteristicsofauditorstahndauditservices
roughtananalogytoathousetinspectorandtahousetinspectionhservice.
Bloom's:h Apply
AACSB:h Communication
AICPA:h BBIndustry;hFNReporting

5) Auditingtservicesandattestationtservicesarethesame.

ANSWER:hFALSEhDiffic
ulty:1Easy
Topic:h Auditing,hAttest,handtAssurancetServiceshDefinedhLearni
nghObjective:h01-
03hUnderstandtherelationshipsamongtauditing,hattestation,handassuranceservices.h
Bloom's:hUnderstandhAA
CSB:hCommunication
AICPA:h BBIndustry;hFNReporting

6) Auditingtisattypetofattesttservice.

ANSWER:hTRUEDifficuh
lty:1Easy
Topic:h Auditing,hAttest,handtAssurancetServiceshDefinedhLearni
nghObjective:h01-
03hUnderstandtherelationshipsamongtauditing,hattestation,handassuranceservices.;h01-
h04hKnowthebasicdefinitionofafinancialhstatementhaudit.

Bloom's:hUnderstandtAAh
CSB:hCommunication
AICPA:h BBIndustry;hFNReporting

7) Testingalltransactionstthatoccurredduringtthetperiodiscostprohibitive.

ANSWER:hTRUEDifficu
hlty:h2hMediumtTopic:hThe

hAuditProcessh h h Learnin

ghObjective:h01-
06h Betablettoexplainwhyonmostaudittengagementsanauditortestsh onlyasampletoftransactionstha
h thoccurred.

Bloom's:h Apply
AACSB:h Communication
AICPA:h FNDecisionhMaking;hBBCriticalhThinking