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TEST BANK For Auditing & Assurance Services: A S
ty ty ty ty ty ty ty tyty
ystematic Approach, 12th Edition
ty ty ty t y
Chapters 1 - 21 Complet ty ty ty ty
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Chapter 1: An Introduction to Assurance and Financial Statement Auditing
t y t y t y t y t y t y t y
Chapter 2: The Financial Statement Auditing Environment
t y t y t y t y
Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
t y t y t y t y t y t y t y
Chapter 4: Risk Assessment t y
Chapter 5: Evidence and Documentation t y t y
Chapter 6: Internal Control in a Financial Statement Audit
t y t y t y t y t y t y
Chapter 7: Auditing Internal Control over Financial Reporting
t y t y t y t y t y
Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls
t y t y t y t y t y t y t y t y t y
Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Bala
t y t y t y t y t y t y t y t y t y
nces
Chapter 10: Auditing the Revenue Process t y t y t y
Chapter 11: Auditing the Purchasing Process t y t y t y
Chapter 12: Auditing the Human Resource Management Processt y t y t y t y t y
Chapter 13: Auditing the Inventory Management Process t y t y t y t y
Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Asset
t y t y t y t y t y t y t y t y t y
s, and Property, Plant, and Equipment
ty t y t y t y t y
Chapter 15: Auditing the Financing/Investing Process: Long-
t y t y t y t y t y t y
Term Liabilities, Stockholders’ Equity, and Income Statement Accounts
t y t y ty t y t y t y t y
Chapter 16: Auditing the Financing/Investing Process: Cash and Investments
t y t y t y t y t y t y t y t y
Chapter 17: Completing the Audit Engagement t y t y t y
Chapter 18: Reports on Audited Financial Statements t y t y t y t y
Chapter 19: Professional Conduct, Independence, and Quality Manageme t y t y t y t y t y
nt
Chapter 20: Legal Liability t y
Chapter 21: Assurance, Attestation, and Internal Auditing Services t y t y t y t y t y
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Auditing & Assurance Services: A Systematic Approach, 12e (Messie
t y t y t y t y t y t y t y t y
r) Chapter 1
ty t y
An Introduction to Assurance and Financial Statement
t y t y t y t y t y t y ty
Auditing
1) Auditing focuses on rules, techniques, and computations required to prepare
t y t y t y t y t y t y t y t y t y t y
and analyze financial information.
ty t y t y
ANSWER: FALSE t y t y
Difficulty: 1 Easy ty ty
Topic: The Importance for Studying Auditing t y t y t y t y
Learning Objective: 01- t y t y
01 Understand why studying auditing can be valuable to you whether or not you pla
t y t y t y t y t y t y t y t y t y ty t y t y t y t y
n to become an auditor, and why it is different from studying accounting.
t y t y t y t y t y t y t y t y t y t y t y ty
Bloom's: Remember AA t y ty
CSB: Communication
t y
AICPA: BB Legal; FN Decision Making t y t y t y t y
2) Decision makers demand reliable information that is provided by accountants.
t y t y t y t y t y t y t y t y t y
ANSWER: TRUE t y t y
Difficulty: 1 Easy ty ty
Topic: The Demand for Auditing and Assurance t y t y t y t y t y
Learning Objective: 01- t y t y
02 Understand the demand for auditing and be able to explain the desired character
t y t y t y t y t y t y t y t y t y t y ty t y t y
istics of auditors and audit services through an analogy to a house inspector and a
t y t y t y t y t y t y t y t y t y t y t y ty t y t y t y
house inspection service.
t y t y
Bloom's: Understand A t y ty
ACSB: Communication t y
AICPA: FN Decision Making; BB Industry t y t y t y t y
3) Information asymmetry seldom occurs. t y t y t y
ANSWER: FALSE t y t y
Difficulty: 2 Medium ty ty
Topic: The Demand for Auditing and Assurance t y t y t y t y t y
Learning Objective: 01- t y t y
02 Understand the demand for auditing and be able to explain the desired character
t y t y t y t y t y t y t y t y t y t y ty t y t y
istics of auditors and audit services through an analogy to a house inspector and a
t y t y t y t y t y t y t y t y t y t y t y ty t y t y t y
house inspection service.
t y t y
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting t y t y t y
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4) Conflicts of interest often occur between absentee owners and managers.
t y t y t y t y t y t y t y t y t y
ANSWER: TRUE t y t y
Difficulty: 2 Medium ty ty
Topic: The Demand for Auditing and Assurance t y t y t y t y t y
Learning Objective: 01- t y t y
02 Understand the demand for auditing and be able to explain the desired character
t y t y t y t y t y t y t y t y t y t y ty t y t y
istics of auditors and audit services through an analogy to a house inspector and a
t y t y t y t y t y t y t y t y t y t y t y ty t y t y t y
house inspection service.
t y t y
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting t y t y t y
5) Auditing services and attestation services are the same.
t y t y t y t y t y t y t y
ANSWER: FALSE t y t y
Difficulty: 1 Easy ty ty
Topic: Auditing, Attest, and Assurance Services Defined t y t y t y t y t y
Learning Objective: 01- t y t y
03 Understand the relationships among auditing, attestation, and assurance services.
t y t y t y t y t y t y t y ty t y
Bloom's: Understand A t y ty
ACSB: Communication t y
AICPA: BB Industry; FN Reporting t y t y t y
6) Auditing is a type of attest service. t y t y t y t y t y t y
ANSWER: TRUE t y t y
Difficulty: 1 Easy ty ty
Topic: Auditing, Attest, and Assurance Services Defined t y t y t y t y t y
Learning Objective: 01- t y t y
03 Understand the relationships among auditing, attestation, and assurance services.;
t y t y t y t y t y t y t y ty t y t y
01-04 Know the basic definition of a financial statement audit.
t y t y t y t y t y t y t y t y t y
Bloom's: Understand A t y ty
ACSB: Communication t y
AICPA: BB Industry; FN Reporting t y t y t y
7) Testing all transactions that occurred during the period is cost prohibitive.
t y t y t y t y t y t y t y t y t y t y
ANSWER: TRUE t y t y
Difficulty: 2 Mediu t y t y
m Topic: The Audit
ty t y t y ty
Process
Learning Objective: 01- t y t y
06 Be able to explain why on most audit engagements an auditor tests only a sample
t y t y t y t y t y t y t y t y t y t y t y ty t y t y t y
of transactions that occurred.
t y t y t y t y
Bloom's: Apply
AACSB: Communication
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ty ty ty ty ty ty ty ty ty ty
TEST BANK For Auditing & Assurance Services: A S
ty ty ty ty ty ty ty tyty
ystematic Approach, 12th Edition
ty ty ty t y
Chapters 1 - 21 Complet ty ty ty ty
Downloaded by: Bookista |
ty ty ty ty Want to earn $1.236
ty ty ty
Distribution of this document is illegal
ty ty ty ty ty extra per year?
ty ty
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ty ty ty ty ty ty ty ty ty ty
Chapter 1: An Introduction to Assurance and Financial Statement Auditing
t y t y t y t y t y t y t y
Chapter 2: The Financial Statement Auditing Environment
t y t y t y t y
Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
t y t y t y t y t y t y t y
Chapter 4: Risk Assessment t y
Chapter 5: Evidence and Documentation t y t y
Chapter 6: Internal Control in a Financial Statement Audit
t y t y t y t y t y t y
Chapter 7: Auditing Internal Control over Financial Reporting
t y t y t y t y t y
Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls
t y t y t y t y t y t y t y t y t y
Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Bala
t y t y t y t y t y t y t y t y t y
nces
Chapter 10: Auditing the Revenue Process t y t y t y
Chapter 11: Auditing the Purchasing Process t y t y t y
Chapter 12: Auditing the Human Resource Management Processt y t y t y t y t y
Chapter 13: Auditing the Inventory Management Process t y t y t y t y
Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Asset
t y t y t y t y t y t y t y t y t y
s, and Property, Plant, and Equipment
ty t y t y t y t y
Chapter 15: Auditing the Financing/Investing Process: Long-
t y t y t y t y t y t y
Term Liabilities, Stockholders’ Equity, and Income Statement Accounts
t y t y ty t y t y t y t y
Chapter 16: Auditing the Financing/Investing Process: Cash and Investments
t y t y t y t y t y t y t y t y
Chapter 17: Completing the Audit Engagement t y t y t y
Chapter 18: Reports on Audited Financial Statements t y t y t y t y
Chapter 19: Professional Conduct, Independence, and Quality Manageme t y t y t y t y t y
nt
Chapter 20: Legal Liability t y
Chapter 21: Assurance, Attestation, and Internal Auditing Services t y t y t y t y t y
Downloaded by: Bookista |
ty ty ty ty Want to earn $1.236
ty ty ty
Distribution of this document is illegal
ty ty ty ty ty extra per year?
ty ty
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
ty ty ty ty ty ty ty ty ty ty
Auditing & Assurance Services: A Systematic Approach, 12e (Messie
t y t y t y t y t y t y t y t y
r) Chapter 1
ty t y
An Introduction to Assurance and Financial Statement
t y t y t y t y t y t y ty
Auditing
1) Auditing focuses on rules, techniques, and computations required to prepare
t y t y t y t y t y t y t y t y t y t y
and analyze financial information.
ty t y t y
ANSWER: FALSE t y t y
Difficulty: 1 Easy ty ty
Topic: The Importance for Studying Auditing t y t y t y t y
Learning Objective: 01- t y t y
01 Understand why studying auditing can be valuable to you whether or not you pla
t y t y t y t y t y t y t y t y t y ty t y t y t y t y
n to become an auditor, and why it is different from studying accounting.
t y t y t y t y t y t y t y t y t y t y t y ty
Bloom's: Remember AA t y ty
CSB: Communication
t y
AICPA: BB Legal; FN Decision Making t y t y t y t y
2) Decision makers demand reliable information that is provided by accountants.
t y t y t y t y t y t y t y t y t y
ANSWER: TRUE t y t y
Difficulty: 1 Easy ty ty
Topic: The Demand for Auditing and Assurance t y t y t y t y t y
Learning Objective: 01- t y t y
02 Understand the demand for auditing and be able to explain the desired character
t y t y t y t y t y t y t y t y t y t y ty t y t y
istics of auditors and audit services through an analogy to a house inspector and a
t y t y t y t y t y t y t y t y t y t y t y ty t y t y t y
house inspection service.
t y t y
Bloom's: Understand A t y ty
ACSB: Communication t y
AICPA: FN Decision Making; BB Industry t y t y t y t y
3) Information asymmetry seldom occurs. t y t y t y
ANSWER: FALSE t y t y
Difficulty: 2 Medium ty ty
Topic: The Demand for Auditing and Assurance t y t y t y t y t y
Learning Objective: 01- t y t y
02 Understand the demand for auditing and be able to explain the desired character
t y t y t y t y t y t y t y t y t y t y ty t y t y
istics of auditors and audit services through an analogy to a house inspector and a
t y t y t y t y t y t y t y t y t y t y t y ty t y t y t y
house inspection service.
t y t y
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting t y t y t y
Downloaded by: Bookista |
ty ty ty ty Want to earn $1.236
ty ty ty
Distribution of this document is illegal
ty ty ty ty ty extra per year? ty ty
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ty ty ty ty ty ty ty ty ty ty
4) Conflicts of interest often occur between absentee owners and managers.
t y t y t y t y t y t y t y t y t y
ANSWER: TRUE t y t y
Difficulty: 2 Medium ty ty
Topic: The Demand for Auditing and Assurance t y t y t y t y t y
Learning Objective: 01- t y t y
02 Understand the demand for auditing and be able to explain the desired character
t y t y t y t y t y t y t y t y t y t y ty t y t y
istics of auditors and audit services through an analogy to a house inspector and a
t y t y t y t y t y t y t y t y t y t y t y ty t y t y t y
house inspection service.
t y t y
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting t y t y t y
5) Auditing services and attestation services are the same.
t y t y t y t y t y t y t y
ANSWER: FALSE t y t y
Difficulty: 1 Easy ty ty
Topic: Auditing, Attest, and Assurance Services Defined t y t y t y t y t y
Learning Objective: 01- t y t y
03 Understand the relationships among auditing, attestation, and assurance services.
t y t y t y t y t y t y t y ty t y
Bloom's: Understand A t y ty
ACSB: Communication t y
AICPA: BB Industry; FN Reporting t y t y t y
6) Auditing is a type of attest service. t y t y t y t y t y t y
ANSWER: TRUE t y t y
Difficulty: 1 Easy ty ty
Topic: Auditing, Attest, and Assurance Services Defined t y t y t y t y t y
Learning Objective: 01- t y t y
03 Understand the relationships among auditing, attestation, and assurance services.;
t y t y t y t y t y t y t y ty t y t y
01-04 Know the basic definition of a financial statement audit.
t y t y t y t y t y t y t y t y t y
Bloom's: Understand A t y ty
ACSB: Communication t y
AICPA: BB Industry; FN Reporting t y t y t y
7) Testing all transactions that occurred during the period is cost prohibitive.
t y t y t y t y t y t y t y t y t y t y
ANSWER: TRUE t y t y
Difficulty: 2 Mediu t y t y
m Topic: The Audit
ty t y t y ty
Process
Learning Objective: 01- t y t y
06 Be able to explain why on most audit engagements an auditor tests only a sample
t y t y t y t y t y t y t y t y t y t y t y ty t y t y t y
of transactions that occurred.
t y t y t y t y
Bloom's: Apply
AACSB: Communication
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