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

TEST BANK For Auditing & Assurance Services: A Syste
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matic Approach, 12th Edition by Messier
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Chapters 1 - 21 Complete
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,Chapter 1: An Introductionto Assuranceand Financial Statement Auditing C
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hapter 2: The Financial Statement Auditing Environment Chapter 3:
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Audit Planning,lTypesofAudit Tests,land Materiality Chapter4:RiskAs
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sessment

Chapter x x x x x x 5: x x x x x x Evidenceand x x x x x x Documentation Chapter 6: x x x x




x Internal x x Controlina Financial x x x x StatementlAudit Chapter 7: Auditing I x xx x x x x




nternal Controlover Financial Reporting Chapter 8: AuditlSampling: An Ove
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rviewand Applicationto TestsofControls Chapter 9: AuditlSampling: An Applicationt
x x x x x x x




olSubstantive TestsloflAccount Balances Chapter x x x x x x x 10: x x x x x Auditingthe x x x x




Revenue x x x x Process Chapter x x x x x 11: x x x x Auditingthe x x x x Purchasing x x




x x Process Chapter 12: Auditingthe Human Resource Management Proce
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ss Chapter 13: Auditingthe Inventory Management Process
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Chapter 14: Auditingthe Financing/Investing Process:lPrepaid Expenses, IntangiblelAssets, and Property, Pl
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ant,landEquipment x




Chapter 15: Auditingthe Financing/Investing Process:lLong-
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xTermLiabilities,Stockholders’Equity,andIncomeStatementAccounts
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Chapter 16: Auditingthe Financing/Investing Process:lCashand Investments C
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hapter x x x 17: x x x Completingthe x x x Audit x x x Engagement Chapter 18 x x x




: Reportson Audited Financial Statements Chapter 19: Profession
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al Conduct, Independence, and Quality Management Chapter20:LegalLiab
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ility

,Chapter 21: Assurance, Attestation, and Internal Auditing Services
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Auditing& Assurance Services: ASystematic Approach,l12e(Messier) Chapter 1 An Intr o
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ductionto Assuranceand Financial Statement Auditing
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1) Auditingfocusesonrules,ltechniques,andcomputationslrequiredtoprepareandanalyzefinan x x x ci
alinformation.

ANSWER:l FALSElDifficulty: x


1Easy
Topic: TheImportanceforStudying Auditing Lea
x x x


rningObjective: 01-
x x


01Understandwhystudyingauditingcanbevaluabletoyouwhetherornotlyouplantolbecomeanaudit x


x or,andwhyitlisdifferentfromstudyingaccounting.
x


Bloom's: Remember AACSB x x


: Communication
x


AICPA: BBLegal;FNDecisionMaking
x




2) Decisionmakersdemandreliableinformationthatislprovidedbyaccountants.

ANSWER:l TRUEDifficulty: x


1Easy
Topic: The DemandforAuditingand Assurance L
x x x x


earningObjective: 01- x x


02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa x x x nd
auditserviceslthroughananalogytoahouseinspectorandahouseinspectionservice.
Bloom's: UnderstandAACS x x x


B:l Communication
x


AICPA: FNDecision Making;BBIndustry
x x




3) Informationasymmetryseldomoccurs.

ANSWER:l FALSElDifficulty: x


2Medium
Topic: The DemandforAuditingand Assurance L
x x x x


earningObjective: 01- x x


02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa x x x nd
auditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
Bloom's: Apply x


AACSB: Communication x


AICPA: BBIndustry; FNReporting
x x

, 4) Conflictslofinterestoftenoccurbetweenlabsenteeownerslandmanagers.

ANSWER:l TRUEDifficulty: x


2Medium
Topic: The DemandforAuditingand Assurance L
x x x x


earningObjective: 01- x x


02Understandtheldemandforauditingandbeabletolexplainthedesiredcharacteristicsofauditorsa x x x nd
auditserviceslthroughananalogytoahouselinspectorandahouseinspectionservice.
Bloom's: Apply x


AACSB: Communication x


AICPA: BBIndustry; FNReporting
x x




5) Auditingserviceslandattestationserviceslarethelsame.

ANSWER:l FALSElDifficulty: x


1Easy
Topic: Auditing, Attest,andAssurance ServicesDefined LearningO
x x x x


bjective: 01- x


03Understandtherelationshipsamongauditing,lattestation,andassuranceservices. x x x Blo
om's: Understand AACS
x x


B: Communication
x


AICPA: BBIndustry; FNReporting
x x




6) Auditingisatypeofattestservice. A x




NSWER:l TRUEDifficulty: x


1Easy
Topic: Auditing, Attest,landAssurance ServicesDefined LearningO
x x x x


bjective: 01- x


03Understandtherelationshipsamongauditing,lattestation,landassuranceservices.;l01-
x x04Knowthebasicdefinitionofafinancialstatementaudit.
x


Bloom's: UnderstandAACS x x x


B:l Communication
x


AICPA: BBIndustry; FNReporting
x x




7) Testingalltransactionsthatloccurredduringtheperiodislcostlprohibitive.

ANSWER:l TRUEDifficulty: x


2Medium Topic: TheAuditP r
x x x x


ocess
LearningObjective: 01- x x


06Beableltoexplainwhyonmostauditengagementsanauditortestslonlyasampleoftransactionsthat
x x x x x x o
ccurred.
Bloom's: Apply x


AACSB: Communication x


AICPA: FNDecisionMaking;BBCritical Thinking
x x