TEST BANK For Auditing & Assurance Services:
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A Systematic Approach, 12th Edition
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Chapters 1 - 21 Complete
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,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)
Chapter |1 | | An ||Introduction ||to ||Assurance ||and ||Financial ||Statement ||Auditing
1) Auditing ||focuses |on |rules, ||techniques, ||and |computations |required |to |prepare |and |analyze
||financial ||information.
ANSWER: | | FALSE
Difficulty: |1 |Easy
Topic: | | The |Importance ||for |Studying ||Auditing
Learning ||Objective: ||01-01 ||Understand ||why ||studying ||auditing ||can ||be ||valuable ||to ||you ||whether ||or
||not || you ||plan ||to ||become ||an ||auditor, ||and ||why ||it ||is ||different ||from ||studying ||accounting.
Bloom's: ||Remember
||AACSB: |Communication
AICPA: | | BB ||Legal; ||FN ||Decision ||Making
2) Decision |makers |demand ||reliable ||information |that ||is |provided ||by|accountants.
ANSWER: | | TRUE
Difficulty: |1 |Easy
Topic: | | The |Demand ||for ||Auditing ||and ||Assurance
Learning ||Objective: ||01-02 ||Understand ||the ||demand ||for ||auditing ||and ||be ||able ||to ||explain ||the
||desired ||characteristics ||of |auditors ||and |audit ||services |through |an |analogy |to ||a |house |inspector ||and ||a
||house ||inspection ||service.
Bloom's: ||Understand
||AACSB: |Communication
AICPA: | | FN ||Decision ||Making; ||BB ||Industry
3) Information |asymmetry |seldom |occurs.
ANSWER: | | FALSE
Difficulty: ||2 ||Medium
Topic: | | The |Demand ||for ||Auditing ||and ||Assurance
Learning ||Objective: ||01-02 ||Understand ||the ||demand ||for ||auditing ||and ||be ||able ||to ||explain ||the
||desired ||characteristics ||of |auditors ||and |audit ||services |through |an |analogy |to ||a |house |inspector ||and ||a
||house ||inspection ||service.
Bloom's: | | Apply
AACSB: | | Communication
AICPA: | | BB |Industry; |FN |Reporting
, 4) Conflicts |of |interest ||often ||occur ||between |absentee ||owners |and ||managers.
ANSWER: | | TRUE
Difficulty: ||2 ||Medium
Topic: | | The |Demand ||for ||Auditing ||and ||Assurance
Learning ||Objective: ||01-02 ||Understand ||the ||demand ||for ||auditing ||and ||be ||able ||to ||explain ||the
||desired ||characteristics ||of |auditors ||and |audit ||services |through |an |analogy |to ||a |house |inspector ||and ||a
||house ||inspection ||service.
Bloom's: | | Apply
AACSB: | | Communication
AICPA: | | BB |Industry; |FN |Reporting
5) Auditing |services ||and ||attestation ||services ||are |the |same.
ANSWER: | | FALSE
Difficulty: |1 |Easy
Topic: | | Auditing, ||Attest, ||and ||Assurance ||Services ||Defined
Learning |Objective: | | 01-03 |Understand |the |relationships |among |auditing, |attestation, |and
||assurance ||services.
Bloom's: ||Understand
||AACSB: |Communication
AICPA: | | BB |Industry; |FN |Reporting
6) Auditing ||is ||a |type ||of |attest ||service.
ANSWER: | | TRUE
Difficulty: |1 |Easy
Topic: | | Auditing, ||Attest, ||and ||Assurance |Services ||Defined
Learning |Objective: | | 01-03 |Understand |the |relationships |among |auditing, |attestation, |and
||assurance ||services.; ||01-04 ||Know ||the ||basic ||definition ||of ||a ||financial ||statement ||audit.
Bloom's: ||Understand
||AACSB: |Communication
AICPA: | | BB |Industry; |FN |Reporting
7) Testing |all |transactions ||that |occurred ||during ||the ||period ||is |cost ||prohibitive.
ANSWER: | | TRUE
Difficulty: ||2 ||Medium
||Topic: ||The |Audit |Process
Learning ||Objective: | | 01-06 ||Be |able |to ||explain ||why |on |most ||audit ||engagements ||an |auditor |tests
||only ||a ||sample ||of ||transactions ||that ||occurred.
Bloom's: | | Apply
AACSB: | | Communication
AICPA: | | FN |Decision ||Making; |BB ||Critical |Thinking
|| || || || || ||
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)
Chapter |1 | | An ||Introduction ||to ||Assurance ||and ||Financial ||Statement ||Auditing
1) Auditing ||focuses |on |rules, ||techniques, ||and |computations |required |to |prepare |and |analyze
||financial ||information.
ANSWER: | | FALSE
Difficulty: |1 |Easy
Topic: | | The |Importance ||for |Studying ||Auditing
Learning ||Objective: ||01-01 ||Understand ||why ||studying ||auditing ||can ||be ||valuable ||to ||you ||whether ||or
||not || you ||plan ||to ||become ||an ||auditor, ||and ||why ||it ||is ||different ||from ||studying ||accounting.
Bloom's: ||Remember
||AACSB: |Communication
AICPA: | | BB ||Legal; ||FN ||Decision ||Making
2) Decision |makers |demand ||reliable ||information |that ||is |provided ||by|accountants.
ANSWER: | | TRUE
Difficulty: |1 |Easy
Topic: | | The |Demand ||for ||Auditing ||and ||Assurance
Learning ||Objective: ||01-02 ||Understand ||the ||demand ||for ||auditing ||and ||be ||able ||to ||explain ||the
||desired ||characteristics ||of |auditors ||and |audit ||services |through |an |analogy |to ||a |house |inspector ||and ||a
||house ||inspection ||service.
Bloom's: ||Understand
||AACSB: |Communication
AICPA: | | FN ||Decision ||Making; ||BB ||Industry
3) Information |asymmetry |seldom |occurs.
ANSWER: | | FALSE
Difficulty: ||2 ||Medium
Topic: | | The |Demand ||for ||Auditing ||and ||Assurance
Learning ||Objective: ||01-02 ||Understand ||the ||demand ||for ||auditing ||and ||be ||able ||to ||explain ||the
||desired ||characteristics ||of |auditors ||and |audit ||services |through |an |analogy |to ||a |house |inspector ||and ||a
||house ||inspection ||service.
Bloom's: | | Apply
AACSB: | | Communication
AICPA: | | BB |Industry; |FN |Reporting
, 4) Conflicts |of |interest ||often ||occur ||between |absentee ||owners |and ||managers.
ANSWER: | | TRUE
Difficulty: ||2 ||Medium
Topic: | | The |Demand ||for ||Auditing ||and ||Assurance
Learning ||Objective: ||01-02 ||Understand ||the ||demand ||for ||auditing ||and ||be ||able ||to ||explain ||the
||desired ||characteristics ||of |auditors ||and |audit ||services |through |an |analogy |to ||a |house |inspector ||and ||a
||house ||inspection ||service.
Bloom's: | | Apply
AACSB: | | Communication
AICPA: | | BB |Industry; |FN |Reporting
5) Auditing |services ||and ||attestation ||services ||are |the |same.
ANSWER: | | FALSE
Difficulty: |1 |Easy
Topic: | | Auditing, ||Attest, ||and ||Assurance ||Services ||Defined
Learning |Objective: | | 01-03 |Understand |the |relationships |among |auditing, |attestation, |and
||assurance ||services.
Bloom's: ||Understand
||AACSB: |Communication
AICPA: | | BB |Industry; |FN |Reporting
6) Auditing ||is ||a |type ||of |attest ||service.
ANSWER: | | TRUE
Difficulty: |1 |Easy
Topic: | | Auditing, ||Attest, ||and ||Assurance |Services ||Defined
Learning |Objective: | | 01-03 |Understand |the |relationships |among |auditing, |attestation, |and
||assurance ||services.; ||01-04 ||Know ||the ||basic ||definition ||of ||a ||financial ||statement ||audit.
Bloom's: ||Understand
||AACSB: |Communication
AICPA: | | BB |Industry; |FN |Reporting
7) Testing |all |transactions ||that |occurred ||during ||the ||period ||is |cost ||prohibitive.
ANSWER: | | TRUE
Difficulty: ||2 ||Medium
||Topic: ||The |Audit |Process
Learning ||Objective: | | 01-06 ||Be |able |to ||explain ||why |on |most ||audit ||engagements ||an |auditor |tests
||only ||a ||sample ||of ||transactions ||that ||occurred.
Bloom's: | | Apply
AACSB: | | Communication
AICPA: | | FN |Decision ||Making; |BB ||Critical |Thinking
