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

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

,Chapterx1:xAnxIntroductionxtoxAssurancexandxFinancialxStatementxAuditing

Chapterx2:xThexFinancialxStatementxAuditingxEnvironment

Chapterx3:xAuditxPlanning,xTypesxofxAuditxTests,xandxMateriality

Chapterx4:xRiskxAssessment

Chapterx5:xEvidencexandxDocumentation

Chapterx6:xInternalxControlxinxaxFinancialxStatementxAudit

Chapterx7:xAuditingxInternalxControlxoverxFinancialxReporting

Chapterx8:xAuditxSampling:xAnxOverviewxandxApplicationxtoxTestsxofxControls

Chapterx9:xAuditxSampling:xAnxApplicationxtoxSubstantivexTestsxofxAccountxBalances

Chapterx10:xAuditingxthexRevenuexProcess

Chapterx11:xAuditingxthexPurchasingxProcess

Chapterx12:xAuditingxthexHumanxResourcexManagementxProcess

Chapterx13:xAuditingxthexInventoryxManagementxProcess

Chapterx14:xAuditingxthexFinancing/InvestingxProcess:xPrepaidxExpenses,xIntangiblexAssets,xandxProp
erty,xPlant,xandxEquipment

Chapterx15:xAuditingxthexFinancing/InvestingxProcess:xLong-
TermxLiabilities,xStockholders’xEquity,xandxIncomexStatementxAccounts

Chapterx16:xAuditingxthexFinancing/InvestingxProcess:xCashxandxInvestments

Chapterx17:xCompletingxthexAuditxEngagement

Chapterx18:xReportsxonxAuditedxFinancialxStatements

Chapterx19:xProfessionalxConduct,xIndependence,xandxQualityxManagement

Chapterx20:xLegalxLiability

Chapterx21:xAssurance,xAttestation,xandxInternalxAuditingxServices

,Auditingx&xAssurancexServices:xAxSystematicxApproach,x12ex(Messier)xChapterx1
x AnxIntroductionxtoxAssurancexandxFinancialxStatementxAuditing




1) Auditingxfocusesxonxrules,xtechniques,xandxcomputationsxrequiredxtoxpreparexandxanalyz
exfinancialxinformation.

ANSWER:x FALSExDifficulty
:x1xEasy
Topic:x ThexImportancexforxStudyingxAuditing
LearningxObjective:x 01-
01xUnderstandxwhyxstudyingxauditingxcanxbexvaluablextoxyouxwhetherxorxnotxyouxplanxtoxbecomex
anxauditor,xandxwhyxitxisxdifferentxfromxstudyingxaccounting.
Bloom's:x RememberxAAC
SB:x Communication
AICPA:x BBxLegal;xFNxDecisionxMaking

2) Decisionxmakersxdemandxreliablexinformationxthatxisxprovidedxbyxaccountants.

ANSWER:x TRUExDifficulty:
x1xEasy

Topic:x ThexDemandxforxAuditingxandxAssurance
LearningxObjective:x 01-
02xUnderstandxthexdemandxforxauditingxandxbexablextoxexplainxthexdesiredxcharacteristicsxofxaudi
torsxandxauditxservicesxthroughxanxanalogyxtoxaxhousexinspectorxandxaxhousexinspectionxservice.
Bloom's:x UnderstandxAAC
SB:x Communication
AICPA:x FNxDecisionxMaking;xBBxIndustry

3) Informationxasymmetryxseldomxoccurs.

ANSWER:x FALSExDifficulty
:x2xMedium
Topic:x ThexDemandxforxAuditingxandxAssurance
LearningxObjective:x 01-
02xUnderstandxthexdemandxforxauditingxandxbexablextoxexplainxthexdesiredxcharacteristicsxofxaudi
torsxandxauditxservicesxthroughxanxanalogyxtoxaxhousexinspectorxandxaxhousexinspectionxservice.
Bloom's:x Apply
AACSB:x Communication
AICPA:x BBxIndustry;xFNxReporting

, 4) Conflictsxofxinterestxoftenxoccurxbetweenxabsenteexownersxandxmanagers.

ANSWER:x TRUExDifficulty:
x2xMedium

Topic:x ThexDemandxforxAuditingxandxAssurance
LearningxObjective:x 01-
02xUnderstandxthexdemandxforxauditingxandxbexablextoxexplainxthexdesiredxcharacteristicsxofxaudi
torsxandxauditxservicesxthroughxanxanalogyxtoxaxhousexinspectorxandxaxhousexinspectionxservice.
Bloom's:x Apply
AACSB:x Communication
AICPA:x BBxIndustry;xFNxReporting

5) Auditingxservicesxandxattestationxservicesxarexthexsame.

ANSWER:x FALSExDifficulty
:x1xEasy
Topic:x Auditing,xAttest,xandxAssurancexServicesxDefined
LearningxObjective:x 01-
03xUnderstandxthexrelationshipsxamongxauditing,xattestation,xandxassurancexservices.
Bloom's:x UnderstandxAAC
SB:x Communication
AICPA:x BBxIndustry;xFNxReporting

6) Auditingxisxaxtypexofxattestxservice.

ANSWER:x TRUExDifficulty:
x1xEasy

Topic:x Auditing,xAttest,xandxAssurancexServicesxDefined
LearningxObjective:x 01-
03xUnderstandxthexrelationshipsxamongxauditing,xattestation,xandxassurancexservices.;x01-
04xKnowxthexbasicxdefinitionxofxaxfinancialxstatementxaudit.
Bloom's:x UnderstandxAAC
SB:x Communication
AICPA:x BBxIndustry;xFNxReporting

7) Testingxallxtransactionsxthatxoccurredxduringxthexperiodxisxcostxprohibitive.

ANSWER:x TRUExDifficulty:
x2xMediumxTopic:x ThexAu

ditxProcess
LearningxObjective:x 01-
06xBexablextoxexplainxwhyxonxmostxauditxengagementsxanxauditorxtestsxonlyxaxsamplexofxtransacti
onsxthatxoccurred.
Bloom's:x Apply