TEST BANK FOR q q
Auditing & Assurance Services A Systematic Approach 12e
q q q q q q q
Messier Chapter 1-21 Answers are at the End of Each Chapter
q q q q q q q q q q
Chapter 1 q
Student name:
q
1) Why qdo qauditors qoften quse qa qsampling qapproach qto qevidence qgathering?
1) q
A) Auditors qare qexperts qand qdo qnot qneed qto qlook qat qmuch qto qknow qwhether qthe
qfinancial qstatements qare qcorrect qor qnot.
B) Auditors qmust qbalance qthe qcost qof qthe qaudit qwith qthe qneed qfor qprecision qand qfor qsome qtypes
qof qevidence, qcomputer qdata qanalytic qapproaches qcan’t qbe qused.
C) Auditors qmust qlimit qtheir qexposure qto qtheir qauditee qto qmaintain qindependence.
D) The qauditor's qrelationship qwith qthe qauditee qis qgenerally qadversarial, qso qthe qauditor qwill
qnot qhave qaccess qto qall qof qthe qfinancial qinformation qof qthe qcompany.
Question qDetails
AACSB q: q Communication
qAICPA q: qFN qDecision
qMaking
Accessibility q: qKeyboard qNavigation
qDifficulty q: q1 qEasy
AICPA q: qBB qIndustry
qBloom's q: qUnderstand
Learning qObjective q: q01-05 qUnderstand qwhy qsampling qis qimportant qin qan qaudit.
qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
qTopic q: qThe qAudit qProcess
2) Which qof qthe qfollowing qstatements qbest qdescribes qa qrelationship qbetween qsample qsize
qand qother qelements qof qauditing?
2) q
, A) If qmateriality qincreases, qso qwill qthe qsample qsize.
B) If qthe qdesired qlevel qof qassurance qincreases, qsample qsizes qcan qbe qsmaller.
C) If qmateriality qdecreases, qsample qsize qwill qneed qto qincrease.
D) There qis qno qrelationship qbetween qsample qsize qand qmateriality qor qthe qdesired qlevel
qof qassurance.
Question qDetails
Accessibility q: qKeyboard qNavigation
qBloom's q: qApply
Difficulty q: q2 qMedium
AICPA q: qBB qCritical
qThinking qAACSB q:
q Analytical qThinking qAICPA
q: qFN qRisk qAnalysis
Learning qObjective q: q01-05 qUnderstand qwhy qsampling qis qimportant qin qan qaudit.
qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
qTopic q: qThe qAudit qProcess
3) Which qof qthe qfollowing qstatements qabout qthe qstudy qof qauditing qis qNOT qtrue?
3) q
A) The qstudy qof qauditing qcan qbe qvaluable qto qfuture qaccountants qand qbusiness qdecision
qmakers qwhether qor qnot qthey qplan qto qbecome qauditors.
B) The qstudy qof qauditing qfocuses qon qlearning qthe qanalytical qand qlogical qskills qnecessary
qto qevaluate qthe qrelevance qand qreliability qof qinformation.
C) The qstudy qof qauditing qfocuses qon qlearning qthe qrules, qtechniques, qand qcomputations qrequired
qto qanalyze qfinancial qstatements qfor qmaking qinvestment qrecommendations.
D) The qstudy qof qauditing qbegins qwith qthe qunderstanding qof qa qcoherent qlogical qframework
qand qtechniques quseful qfor qgathering qand qanalyzing qevidence qabout qothers’ qassertions.
, Question qDetails
AACSB q: q Communication
qAICPA q: qFN qDecision
qMaking
Accessibility q: qKeyboard qNavigation
Learning qObjective q: q01-01 qUnderstand qwhy qstudying qauditing qcan qbe qvaluable qto qyou qwhether qor qnot
qyou qAICPA q: qBB qIndustry
Difficulty q: q2 qMedium
qBloom's q: qAnalyze
qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
qTopic q: qThe qImportance qfor qStudying
qAuditing
4) The qbasic qdefinition qof qauditing qessentially qindicates qthat, qoverall, qauditing qis qa qprocess qto:
4) q
A) detect qfraud.
B) examine qindividual qtransactions qso qthat qthe qauditor qmay qcertify qas qto qtheir qvalidity.
C) objectively qobtain qand qevaluate qevidence qregarding qassertions qmade qby qanother qparty.
D) assure qthe qconsistent qapplication qof qcorrect qaccounting qprocedures.
Question qDetails
AACSB q: q Communication
qAccessibility q: qKeyboard
qNavigation qBloom's q: qRemember
Difficulty q: q1 qEasy
qAICPA q: qFN qReporting
Learning qObjective q: q01-03 qKnow qthe qbasic qdefinition qof qa qfinancial qstatement
qaudit. qAICPA q: qBB qCritical qThinking
Gradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
Topic q: qAuditing, qAttest, qand qAssurance qServices qDefined
5) Assurance qservices qmay qimprove qall qof qthe qfollowing qexcept:
5) q
, A) relevance.
B) credibility.
C) periodicity.
D) reliability.
Question qDetails
AACSB q: q Communication
qAccessibility q: qKeyboard
qNavigation qBloom's q: qRemember
Difficulty q: q1 qEasy
qAICPA q: qBB qIndustry
qAICPA q: qFN qReporting
Learning qObjective q: q01-03 qKnow qthe qbasic qdefinition qof qa qfinancial qstatement
qaudit. qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
Topic q: qAuditing, qAttest, qand qAssurance qServices qDefined
6) Evidence qis qreliable qif qit:
6) q
A) signals qthe qtrue qstate qof qa qmanagement qassertion.
B) applies qto qthe qperiod qbeing qaudited.
C) relates qto qthe qaudit qassertion qbeing qtested.
D) is qsufficient qto qjustify qa qconclusion.
Question qDetails
Accessibility q: qKeyboard qNavigation
qDifficulty q: q1 qEasy
Bloom's q: qUnderstand
Learning qObjective q: q01-04 qUnderstand qthe qfundamental qconcepts qthat qunderlie qfinancial qstatement
qaudi qAICPA q: qBB qCritical qThinking
AACSB q: q Analytical
qThinking qAICPA q: qFN
qMeasurement
Topic q: qFundamental qConcepts qin qConducting qa qFinancial qStatement qAudit
qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
Auditing & Assurance Services A Systematic Approach 12e
q q q q q q q
Messier Chapter 1-21 Answers are at the End of Each Chapter
q q q q q q q q q q
Chapter 1 q
Student name:
q
1) Why qdo qauditors qoften quse qa qsampling qapproach qto qevidence qgathering?
1) q
A) Auditors qare qexperts qand qdo qnot qneed qto qlook qat qmuch qto qknow qwhether qthe
qfinancial qstatements qare qcorrect qor qnot.
B) Auditors qmust qbalance qthe qcost qof qthe qaudit qwith qthe qneed qfor qprecision qand qfor qsome qtypes
qof qevidence, qcomputer qdata qanalytic qapproaches qcan’t qbe qused.
C) Auditors qmust qlimit qtheir qexposure qto qtheir qauditee qto qmaintain qindependence.
D) The qauditor's qrelationship qwith qthe qauditee qis qgenerally qadversarial, qso qthe qauditor qwill
qnot qhave qaccess qto qall qof qthe qfinancial qinformation qof qthe qcompany.
Question qDetails
AACSB q: q Communication
qAICPA q: qFN qDecision
qMaking
Accessibility q: qKeyboard qNavigation
qDifficulty q: q1 qEasy
AICPA q: qBB qIndustry
qBloom's q: qUnderstand
Learning qObjective q: q01-05 qUnderstand qwhy qsampling qis qimportant qin qan qaudit.
qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
qTopic q: qThe qAudit qProcess
2) Which qof qthe qfollowing qstatements qbest qdescribes qa qrelationship qbetween qsample qsize
qand qother qelements qof qauditing?
2) q
, A) If qmateriality qincreases, qso qwill qthe qsample qsize.
B) If qthe qdesired qlevel qof qassurance qincreases, qsample qsizes qcan qbe qsmaller.
C) If qmateriality qdecreases, qsample qsize qwill qneed qto qincrease.
D) There qis qno qrelationship qbetween qsample qsize qand qmateriality qor qthe qdesired qlevel
qof qassurance.
Question qDetails
Accessibility q: qKeyboard qNavigation
qBloom's q: qApply
Difficulty q: q2 qMedium
AICPA q: qBB qCritical
qThinking qAACSB q:
q Analytical qThinking qAICPA
q: qFN qRisk qAnalysis
Learning qObjective q: q01-05 qUnderstand qwhy qsampling qis qimportant qin qan qaudit.
qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
qTopic q: qThe qAudit qProcess
3) Which qof qthe qfollowing qstatements qabout qthe qstudy qof qauditing qis qNOT qtrue?
3) q
A) The qstudy qof qauditing qcan qbe qvaluable qto qfuture qaccountants qand qbusiness qdecision
qmakers qwhether qor qnot qthey qplan qto qbecome qauditors.
B) The qstudy qof qauditing qfocuses qon qlearning qthe qanalytical qand qlogical qskills qnecessary
qto qevaluate qthe qrelevance qand qreliability qof qinformation.
C) The qstudy qof qauditing qfocuses qon qlearning qthe qrules, qtechniques, qand qcomputations qrequired
qto qanalyze qfinancial qstatements qfor qmaking qinvestment qrecommendations.
D) The qstudy qof qauditing qbegins qwith qthe qunderstanding qof qa qcoherent qlogical qframework
qand qtechniques quseful qfor qgathering qand qanalyzing qevidence qabout qothers’ qassertions.
, Question qDetails
AACSB q: q Communication
qAICPA q: qFN qDecision
qMaking
Accessibility q: qKeyboard qNavigation
Learning qObjective q: q01-01 qUnderstand qwhy qstudying qauditing qcan qbe qvaluable qto qyou qwhether qor qnot
qyou qAICPA q: qBB qIndustry
Difficulty q: q2 qMedium
qBloom's q: qAnalyze
qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
qTopic q: qThe qImportance qfor qStudying
qAuditing
4) The qbasic qdefinition qof qauditing qessentially qindicates qthat, qoverall, qauditing qis qa qprocess qto:
4) q
A) detect qfraud.
B) examine qindividual qtransactions qso qthat qthe qauditor qmay qcertify qas qto qtheir qvalidity.
C) objectively qobtain qand qevaluate qevidence qregarding qassertions qmade qby qanother qparty.
D) assure qthe qconsistent qapplication qof qcorrect qaccounting qprocedures.
Question qDetails
AACSB q: q Communication
qAccessibility q: qKeyboard
qNavigation qBloom's q: qRemember
Difficulty q: q1 qEasy
qAICPA q: qFN qReporting
Learning qObjective q: q01-03 qKnow qthe qbasic qdefinition qof qa qfinancial qstatement
qaudit. qAICPA q: qBB qCritical qThinking
Gradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
Topic q: qAuditing, qAttest, qand qAssurance qServices qDefined
5) Assurance qservices qmay qimprove qall qof qthe qfollowing qexcept:
5) q
, A) relevance.
B) credibility.
C) periodicity.
D) reliability.
Question qDetails
AACSB q: q Communication
qAccessibility q: qKeyboard
qNavigation qBloom's q: qRemember
Difficulty q: q1 qEasy
qAICPA q: qBB qIndustry
qAICPA q: qFN qReporting
Learning qObjective q: q01-03 qKnow qthe qbasic qdefinition qof qa qfinancial qstatement
qaudit. qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
Topic q: qAuditing, qAttest, qand qAssurance qServices qDefined
6) Evidence qis qreliable qif qit:
6) q
A) signals qthe qtrue qstate qof qa qmanagement qassertion.
B) applies qto qthe qperiod qbeing qaudited.
C) relates qto qthe qaudit qassertion qbeing qtested.
D) is qsufficient qto qjustify qa qconclusion.
Question qDetails
Accessibility q: qKeyboard qNavigation
qDifficulty q: q1 qEasy
Bloom's q: qUnderstand
Learning qObjective q: q01-04 qUnderstand qthe qfundamental qconcepts qthat qunderlie qfinancial qstatement
qaudi qAICPA q: qBB qCritical qThinking
AACSB q: q Analytical
qThinking qAICPA q: qFN
qMeasurement
Topic q: qFundamental qConcepts qin qConducting qa qFinancial qStatement qAudit
qGradable q: qautomatic
Accessibility q: qScreen qReader qCompatible
