Summary Excel in Your Studies with [Auditing A Risk Based-Approach to Conducting a Quality Audit, Johnstone,10e] Solutions Manual: The Ultimate Resource for Academic Excellence!

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

b. False

ANSWER: True

POINTS: 1

NATIONAL STANDARDS: United States - BUSPORG: Analytic

STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Demand for Assurances


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

b. False

ANSWER: True

POINTS: 1

NATIONAL STANDARDS: United States - BUSPORG: Analytic

STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Auditing Defined


3. Auditors should conduct their work with an attitude of professional skepticism.
a. True

b. False

ANSWER: True

POINTS: 1

,NATIONAL STANDARDS: United States - BUSPORG: Analytic

STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Auditing Defined


4. A bank using Milton Company's financial statements to determine the creditworthiness
of a potential loan to Milton is a good example of the need for unbiased reporting.
a. True

b. False

ANSWER: True

POINTS: 1

NATIONAL STANDARDS: United States - BUSPORG: Analytic

STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Auditing Defined


5. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True

b. False

ANSWER: True

POINTS: 1

NATIONAL STANDARDS: United States - BUSPORG: Analytic

STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Auditing Defined


6. In all states, a CPA must have completed at least 150 hours of college semester hours
to receive their license.

, a. True

b. False

ANSWER: False

POINTS: 1

NATIONAL STANDARDS: United States - BUSPORG: Analytic

STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Professional and Regulatory Organizations


7. The Center for Audit Quality was started by the International Federation of
Accountants.
a. True

b. False

ANSWER: False

POINTS: 1

NATIONAL STANDARDS: United States - BUSPORG: Analytic

STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Professional and Regulatory Organizations


8. The Center for Audit Quality has the primary authority to set auditing standards.
a. True

b. False

ANSWER: False

POINTS: 1

NATIONAL STANDARDS: United States - BUSPORG: Analytic

, STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Professional and Regulatory Organizations


9. In an audit, management is considered the “client”.
a. True

b. False

ANSWER: False

POINTS: 1

NATIONAL STANDARDS: United States - BUSPORG: Analytic

STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Auditing Defined


10. Auditing is the process of attesting to assertions about economic actions and events.
a. True

b. False

ANSWER: True

POINTS: 1

NATIONAL STANDARDS: United States - BUSPORG: Analytic

STATE STANDARDS: United States - AK - AICPA BB-Critical thinking

TOPICS: Auditing Defined


11. Auditing is the process of verifying the accuracy of the financial statements.
a. True

b. False