Test Bank For Auditing: A Risk Based-Approach 12th Edition by Zehms & Rittenberg, ISBN: 9780357721872, All 15 Chapters Covered, Verified Latest Edition

,Chapter 1 - Auditing: Integral to the Economy
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1. The need for assurance services arises because the interests of the users of information may be different from
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that of the interests of those responsible for providing information.
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a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
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STATE STANDARDS: f United States - AK - AICPA BB-Critical thinking f f f f f f f



TOPICS: Demand for Assurances f f




2. A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.
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a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
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STATE STANDARDS: f United States - AK - AICPA BB-Critical thinking f f f f f f f



TOPICS: Auditing Defined f




3. Auditors should conduct their work with an attitude of professional skepticism.
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a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
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STATE STANDARDS: f United States - AK - AICPA BB-Critical thinking f f f f f f f



TOPICS: Auditing Defined f




4. A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to
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Milton is a good example of the need for unbiased reporting.
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a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
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STATE STANDARDS: f United States - AK - AICPA BB-Critical thinking f f f f f f f



TOPICS: Auditing Defined f




5. An integrated audit requires the auditor to assess the effectiveness of internal controls.
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a. True
b. False
ANSWER: True
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,Chapter 1 - Auditing: Integral to the Economy
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POINTS: 1
NATIONAL STANDARDS: f United States - BUSPORG: Analytic
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STATE STANDARDS:
f United States - AK - AICPA BB-Critical thinking
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TOPICS: Auditing Defined f




6. In all states, a CPA must have completed at least 150 hours of college semester hours to receive their license.
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a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: f United States - BUSPORG: Analytic f f f f



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



TOPICS: Professional and Regulatory Organizations f f f




7. The Center for Audit Quality was started by the International Federation of Accountants.
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a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: f United States - BUSPORG: Analytic f f f f



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



TOPICS: Professional and Regulatory Organizations f f f




8. The Center for Audit Quality has the primary authority to set auditing standards.
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a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: f United States - BUSPORG: Analytic f f f f



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



TOPICS: Professional and Regulatory Organizations f f f




9. In an audit, management is considered the “client”.
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a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: f United States - BUSPORG: Analytic f f f f



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



TOPICS: Auditing Defined f




10. Auditing is the process of attesting to assertions about economic actions and events.
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, Chapter 1 - Auditing: Integral to the Economy
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a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: f United States - BUSPORG: Analytic
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STATE STANDARDS:
f United States - AK - AICPA BB-Critical thinking
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TOPICS: Auditing Defined f




11. Auditing is the process of verifying the accuracy of the financial statements.
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a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: f United States - BUSPORG: Analytic f f f f



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



TOPICS: Auditing Defined f




12. Management may have incentive to bias financial information, but the various users of the statements are
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not likely to have conflicting interests in the financial information.
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a. True
b. False
ANSWER: False
POINTS: 1
LEARNING OBJECTIVES: f AUDT.JOHN.16.01 01 - LO: 01-01 f f f f



NATIONAL STANDARDS: f United States - BUSPORG: Analytic f f f f



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



TOPICS: Overview of the External Auditing Profession f f f f f




13. Auditing exists because users need unbiased information on which to assess management performance and
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make economic decisions.
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a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: f United States - BUSPORG: Analytic f f f f



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



TOPICS: Auditing Defined f




14. A free market can only exist if there is sharing of perfectly reliable information.
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a. True
b. False
ANSWER: False
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