Auditing A Risk Based Approach Johnstone - Exam Preparation Test Bank (Downloadable Doc)

Chapter 01


1. The need for independent assurance arises because the interests of the users of information may be different from
the interests of those responsible for providing information.
a. True
b. False

ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Need for Independent Assurance
DATE CREATED: 1/17/2018 2:50 AM
DATE MODIFIED: 1/17/2018 7:42 AM

2. A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.
a. True
b. False

ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Auditing Defined
DATE CREATED: 1/17/2018 2:58 AM
DATE MODIFIED: 1/17/2018 7:42 AM




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,Chapter 01


3. A bank using Milton Company's financial statements to evaluate Milton’s loan application is an example of a user’s
need for unbiased reporting.
a. True
b. False

ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: User’s Need for Reliable Financial Reporting
DATE CREATED: 1/17/2018 3:00 AM
DATE MODIFIED: 1/17/2018 7:42 AM

4. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True
b. False

ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Integrated Audit
DATE CREATED: 1/17/2018 3:02 AM
DATE MODIFIED: 1/17/2018 7:42 AM




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,Chapter 01


5. Auditors obtain and evaluate evidence regarding assertions about economic actions and events to verify the
accuracy of those assertions.
a. True
b. False

ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Auditing Defined
DATE CREATED: 1/17/2018 3:03 AM
DATE MODIFIED: 1/17/2018 7:42 AM

6. Auditing is the process of verifying the accuracy of the financial statements.
a. True
b. False

ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Auditing Defined
DATE CREATED: 1/17/2018 3:04 AM
DATE MODIFIED: 1/17/2018 7:42 AM




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, Chapter 01


7. Management may have incentives to present biased financial information, but the various users of the statements are
not likely to have conflicting interests in the financial information.
a. True
b. False

ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Users’ Needs for Reliable Financial Information
DATE CREATED: 1/17/2018 3:06 AM
DATE MODIFIED: 1/17/2018 7:42 AM

8. Auditing exists because users need unbiased information on which to assess management performance and make
economic decisions.
a. True
b. False

ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: AUDI.JOHN.18.01.01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB - Critical thinking
TOPICS: Need for Independent Assurance
DATE CREATED: 1/17/2018 3:07 AM
DATE MODIFIED: 1/17/2018 7:42 AM




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