12th Edition By Messier
All Chapters Complete
,Chapter 1-21
l Answers are at the End of Each Chapter
l l l l l l l
Chapter 1 l
Student name:
l l
1) Whyldolauditorsloftenluselalsamplinglapproachltolevidencelgathering?
1)ll
A) Auditorslarelexpertslandldolnotlneedltollooklatlmuchltolknowlwhetherlthelfinanciall statem
entslarelcorrectlorlnot.
B) Auditorslmustlbalancelthelcostloflthelauditlwithlthelneedlforlprecisionlandlforlsomeltypeslofl evidenc
e,lcomputerldatalanalyticlapproacheslcan’tlbelused.
C) Auditorslmustllimitltheirlexposureltoltheirlauditeeltolmaintainlindependence.
D) Thelauditor'slrelationshiplwithlthelauditeelislgenerallyladversarial,lsolthelauditorlwilllnotl havel
accessltolallloflthelfinanciallinformationloflthelcompany.
QuestionlDetails
AACSBl:l Communicationl AICPAl:lFN
lDecisionlMaking
Accessibilityl:lKeyboardlNavigationl Difficultyl:l1
lEasy
AICPAl:lBBlIndustryl Bloom'sl:lUn
derstand
LearninglObjectivel:l01-
05lUnderstandlwhylsamplinglislimportantlinlanlaudit.l Gradablel:lautomatic
Accessibilityl:lScreenlReaderlCompatiblel To
picl:lThelAuditlProcess
2) Whichloflthelfollowinglstatementslbestldescribeslalrelationshiplbetweenlsamplelsizelandl other
,elementsloflauditing?
l
2)ll
, A) Iflmaterialitylincreases,lsolwilllthelsamplelsize.
B) Ifltheldesiredllevelloflassurancelincreases,lsamplelsizeslcanlbelsmaller.
C) Iflmaterialityldecreases,lsamplelsizelwilllneedltolincrease.
D) Therelislnolrelationshiplbetweenlsamplelsizelandlmaterialitylorltheldesiredllevellofl assur
ance.
QuestionlDetails
Accessibilityl:lKeyboardlNavigationl Bloom's
l:lApply
Difficultyl:l2lMedium
AICPAl:lBBlCriticallThinkingl AAC
SBl:l AnalyticallThinkingl AICPAl:lF
NlRisklAnalysis
LearninglObjectivel:l01-
05lUnderstandlwhylsamplinglislimportantlinlanlaudit.l Gradablel:lautomatic
Accessibilityl:lScreenlReaderlCompatiblel To
picl:lThelAuditlProcess
3) WhichloflthelfollowinglstatementslaboutlthelstudyloflauditinglislNOTltrue?
3)ll
A) Thelstudyloflauditinglcanlbelvaluableltolfuturelaccountantslandlbusinessldecisionlmakersl wheth
erlorlnotltheylplanltolbecomelauditors.
B) Thelstudyloflauditinglfocuseslonllearninglthelanalyticallandllogicallskillslnecessaryltol evalua
telthelrelevancelandlreliabilityloflinformation.
C) Thelstudyloflauditinglfocuseslonllearninglthelrules,ltechniques,landlcomputationslrequiredltol analyz
elfinanciallstatementslforlmakinglinvestmentlrecommendations.
D) Thelstudyloflauditinglbeginslwithlthelunderstandingloflalcoherentllogicallframeworklandl techni
queslusefullforlgatheringlandlanalyzinglevidencelaboutlothers’lassertions.