AUDITING AND ASSURANCE SERVICES A
SYSTEMATIC APPROACH 12TH EDITION
WILLIAM MESSIER TEST BANK
COMPREHENSIVE TEST PAPER 2026
COMPLETE ANSWERS ACCURATE
⫸ 2) Collectively, procedures performed to obtain an understanding of
the entity and its environment, including internal controls, represent the
auditor's
A) audit strategy.
B) tests of controls.
C) risk assessment procedures.
D) tests of transactions. Answer: C
⫸ 3) Which of the following would not be considered further audit
procedures?
A) tests of controls
B) analytical procedures
C) tests of details of balances
D) risk assessment procedures Answer: D
,⫸ 4) Which of the following procedures would most likely be
performed in response to the auditor's assessment of the risk of monetary
misstatements in the financial statements?
A) ratio analysis
B) tests of controls
C) tests of details of balances
D) risk assessment procedures Answer: C
⫸ 5) Which of the following further audit procedures are used to
determine whether all six transaction-related audit objectives have been
achieved for each class of transactions?
A) tests of controls
B) risk assessment procedures
C) substantive tests of transactions
D) preliminary analytical procedures Answer: C
⫸ 6) You are auditing Rodgers and Company. After performing
substantive analytical procedures, you conclude that, for the accounts
tested, the client's balance appears reasonable. This may indicate that
A) details test of balances can be eliminated for those accounts.
B) certain tests of details of balances may be eliminated for those
accounts.
C) control tests may be eliminated for those accounts.
, D) control tests may be reduced for those accounts. Answer: B
⫸ 7) The purpose of tests of controls is to provide reasonable assurance
that the
A) accounting treatment of transactions and balances is valid and proper.
B) internal control procedures are functioning as intended.
C) entity has complied with GAAP disclosure requirements.
D) entity has complied with requirements of quality control. Answer: B
⫸ 8) In the context of an audit of financial statements, substantive tests
are audit procedures that
A) may be eliminated under certain conditions.
B) are designed to discover significant subsequent events.
C) are designed to test for dollar misstatements.
D) will increase proportionately with the auditor's reliance on internal
control. Answer: C
⫸ 9) Which of the following is true?
A) Tests of details of balances focus on the ending general ledger
balances for both balance sheet and income statement accounts.
SYSTEMATIC APPROACH 12TH EDITION
WILLIAM MESSIER TEST BANK
COMPREHENSIVE TEST PAPER 2026
COMPLETE ANSWERS ACCURATE
⫸ 2) Collectively, procedures performed to obtain an understanding of
the entity and its environment, including internal controls, represent the
auditor's
A) audit strategy.
B) tests of controls.
C) risk assessment procedures.
D) tests of transactions. Answer: C
⫸ 3) Which of the following would not be considered further audit
procedures?
A) tests of controls
B) analytical procedures
C) tests of details of balances
D) risk assessment procedures Answer: D
,⫸ 4) Which of the following procedures would most likely be
performed in response to the auditor's assessment of the risk of monetary
misstatements in the financial statements?
A) ratio analysis
B) tests of controls
C) tests of details of balances
D) risk assessment procedures Answer: C
⫸ 5) Which of the following further audit procedures are used to
determine whether all six transaction-related audit objectives have been
achieved for each class of transactions?
A) tests of controls
B) risk assessment procedures
C) substantive tests of transactions
D) preliminary analytical procedures Answer: C
⫸ 6) You are auditing Rodgers and Company. After performing
substantive analytical procedures, you conclude that, for the accounts
tested, the client's balance appears reasonable. This may indicate that
A) details test of balances can be eliminated for those accounts.
B) certain tests of details of balances may be eliminated for those
accounts.
C) control tests may be eliminated for those accounts.
, D) control tests may be reduced for those accounts. Answer: B
⫸ 7) The purpose of tests of controls is to provide reasonable assurance
that the
A) accounting treatment of transactions and balances is valid and proper.
B) internal control procedures are functioning as intended.
C) entity has complied with GAAP disclosure requirements.
D) entity has complied with requirements of quality control. Answer: B
⫸ 8) In the context of an audit of financial statements, substantive tests
are audit procedures that
A) may be eliminated under certain conditions.
B) are designed to discover significant subsequent events.
C) are designed to test for dollar misstatements.
D) will increase proportionately with the auditor's reliance on internal
control. Answer: C
⫸ 9) Which of the following is true?
A) Tests of details of balances focus on the ending general ledger
balances for both balance sheet and income statement accounts.
