TEST BANK
All Chapters Included
1
, TABLE OF CONTENT
Chapter 1: An Introduction to Assurance and Financial Statement
Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning, Types of AudittTests, and
Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidencetand Documentation
Chapter 6: Internal Control in atFinancial StatementtAudit
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
AccounttBalances
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
StatementtAccounts
2
, Chapter 16: Auditing the Financing/Investing Process: Cash and
Investments
Chapter 17: Completingtthe AudittEngagement
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
3
, Auditing& AssurancetServices: ASystematic Approach,
12et(Messier)
Chapter 1 An Introduction to Assuranceand Financial Statement Auditing
1) Auditingtfocuses on rules, techniques, and computations required to
prepare and analyze financial information.
ANSWER : FALSE Diffic
ulty:1Easy
Topic: The Importance for Studying
Auditing Learning Objective: 01-
01 Understand why studying auditing cant be valuablet to you twhether or not tyou
plan to tbecome an auditor,tand twhy ittis differentt from studying accounting.
Bloom's: Remember
AAC SB:
Communication
AICPA: BBLegal; FNDecision Making
2) Decisiontmakersdemandtreliableinformationthatisprovidedbyaccountants.
ANSWER :
TRUEDifficu lty:1Easy
Topic: The Demandfor Auditingand
Assurance Learning Objective: 01-
02 Understand thetdemandforauditing
andbeabletoexplaintthetdesiredtcharacteristicsofauditorsta
ndauditservicesthroughtananalogytoahousetinspectorandahousetinspection service.
4
All Chapters Included
1
, TABLE OF CONTENT
Chapter 1: An Introduction to Assurance and Financial Statement
Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning, Types of AudittTests, and
Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidencetand Documentation
Chapter 6: Internal Control in atFinancial StatementtAudit
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
AccounttBalances
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
StatementtAccounts
2
, Chapter 16: Auditing the Financing/Investing Process: Cash and
Investments
Chapter 17: Completingtthe AudittEngagement
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
3
, Auditing& AssurancetServices: ASystematic Approach,
12et(Messier)
Chapter 1 An Introduction to Assuranceand Financial Statement Auditing
1) Auditingtfocuses on rules, techniques, and computations required to
prepare and analyze financial information.
ANSWER : FALSE Diffic
ulty:1Easy
Topic: The Importance for Studying
Auditing Learning Objective: 01-
01 Understand why studying auditing cant be valuablet to you twhether or not tyou
plan to tbecome an auditor,tand twhy ittis differentt from studying accounting.
Bloom's: Remember
AAC SB:
Communication
AICPA: BBLegal; FNDecision Making
2) Decisiontmakersdemandtreliableinformationthatisprovidedbyaccountants.
ANSWER :
TRUEDifficu lty:1Easy
Topic: The Demandfor Auditingand
Assurance Learning Objective: 01-
02 Understand thetdemandforauditing
andbeabletoexplaintthetdesiredtcharacteristicsofauditorsta
ndauditservicesthroughtananalogytoahousetinspectorandahousetinspection service.
4
