TEST BANK for Auditing A Practical Approach, 4th
Canadian Edition Author:Moroney, Campbell, Warren. All
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1|Page
, CHAPTER 1
INTRODUCTION AND OVERVIEW OF AUDIT AND
ASSURANCE
CHAPTER LEARNING OBJECTIVES
1. Define An Assurance Engagement.
An Assurance Engagement Involves An Assurance Provider Arriving Atan Opinion About
Some Information Being Provided By Their Client Toa Third Party. A Financial Statement
Audit Is One Type Of Assuranceengagement. This Engagement Involves An Auditor Arriving
At An Opinionabout The Fair Presentation Of The Financial Statements. The Auditreport Is
Addressed To The Shareholders Of The Company Being Audited,But Other Users May Read
The Financial Statements. Learning Aboutauditing And Assurance Requires An
Understanding Of Auditing Andassurance Terminology, Including Terms Such As Audit
Risk, Materiality,Internal Controls, Listed Entity, And Assertions.
2. Explain Why There Is A Demand For Audit And Assurance Services.
Financial Statement Users Include Investors (Shareholders), Suppliers,Customers, Lenders,
Employees, Governments, And The General Public.These Groups Of Users Demand Audited
Financial Statements Because Oftheir Remoteness From The Entity, Accounting Complexity,
Theirincentivescompeting With Those Of The Entity‘S Managers, And Their Needfor Reliable
Information On Which To Base Decisions. The Theories Usedto Describe The Demand For
Audit And Assurance Services Are Agencytheory, The Information Hypothesis, And The
Insurance Hypothesis.
3. Differentiate Between Types Of Assurance Services.
Assurance Services Include Financial Statement Audits, Complianceaudits, Performance
Audits, Comprehensive Audits, Internal Audits,And Assurance On Corporate Social
Responsibility (CSR) Disclosures.
4. Explain The Different Levels Of Assurance.
2|Page
, The Different Levels Of Assurance Include Reasonable Assurance, Whichis The Highest Level
Of Assurance, Limited Assurance, And No Assurance.Reasonable Assurance Is Provided
On An Audit Of A Company‘Sfinancial Statements. Limited Assurance Is Provided In A
Review Of
3|Page
, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
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5. Outline Different Audit Opinions
An Auditor Can Issue An Unmodified Opinion, Also Known As A Cleanreport, Or An
Unmodified Opinion With An Emphasis Of Matter Paragraph.Alternatively, A Modified
Opinion May Be Issued As A Qualified, Anadverse, Or A Disclaimer Of Opinion.
6. Differentiate Between The Roles Of The Preparer And The Auditor, And Discuss
The Different Firms That Provide Assurance Services.
It Is The Responsibility Of A Company‘S Governing Body To Ensure Thatits Financial
Statements Are Relevant, Reliable, Comparable, Understandable,And True And Fair. It Is The
Responsibility Of The Auditor To Form Anopinion On The Fair Presentation Of The Financial
Statements. In Doing,So 1- 2 Auditing: A Practical Approach, Fourth Canadian Edition
The Auditor Must Maintain Professional Scepticism And Utilize Professionaljudgement And
Due Care.
The Firms That Provide Assurance Services Include The Big-4international Firms, The
National Firms (With International Links),Local And Regional Firms, And Consulting Firms
That Tend To Specializein Assurance Of CSR And Environmental Disclosures.
7. Identify The Different Regulators, Legislation, And Regulations Surrounding
The Assurance Process.
Lom O a r C P S D | 3 08 78 4 9 5
Introduction And Overview Of Audit And Assurance 1-3
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Canadian Edition Author:Moroney, Campbell, Warren. All
Chapters[1-14] 100% Complete A+ Study Guide Newest
Version 2025
FULL TEST BANK!!!
1|Page
, CHAPTER 1
INTRODUCTION AND OVERVIEW OF AUDIT AND
ASSURANCE
CHAPTER LEARNING OBJECTIVES
1. Define An Assurance Engagement.
An Assurance Engagement Involves An Assurance Provider Arriving Atan Opinion About
Some Information Being Provided By Their Client Toa Third Party. A Financial Statement
Audit Is One Type Of Assuranceengagement. This Engagement Involves An Auditor Arriving
At An Opinionabout The Fair Presentation Of The Financial Statements. The Auditreport Is
Addressed To The Shareholders Of The Company Being Audited,But Other Users May Read
The Financial Statements. Learning Aboutauditing And Assurance Requires An
Understanding Of Auditing Andassurance Terminology, Including Terms Such As Audit
Risk, Materiality,Internal Controls, Listed Entity, And Assertions.
2. Explain Why There Is A Demand For Audit And Assurance Services.
Financial Statement Users Include Investors (Shareholders), Suppliers,Customers, Lenders,
Employees, Governments, And The General Public.These Groups Of Users Demand Audited
Financial Statements Because Oftheir Remoteness From The Entity, Accounting Complexity,
Theirincentivescompeting With Those Of The Entity‘S Managers, And Their Needfor Reliable
Information On Which To Base Decisions. The Theories Usedto Describe The Demand For
Audit And Assurance Services Are Agencytheory, The Information Hypothesis, And The
Insurance Hypothesis.
3. Differentiate Between Types Of Assurance Services.
Assurance Services Include Financial Statement Audits, Complianceaudits, Performance
Audits, Comprehensive Audits, Internal Audits,And Assurance On Corporate Social
Responsibility (CSR) Disclosures.
4. Explain The Different Levels Of Assurance.
2|Page
, The Different Levels Of Assurance Include Reasonable Assurance, Whichis The Highest Level
Of Assurance, Limited Assurance, And No Assurance.Reasonable Assurance Is Provided
On An Audit Of A Company‘Sfinancial Statements. Limited Assurance Is Provided In A
Review Of
3|Page
, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
5. Outline Different Audit Opinions
An Auditor Can Issue An Unmodified Opinion, Also Known As A Cleanreport, Or An
Unmodified Opinion With An Emphasis Of Matter Paragraph.Alternatively, A Modified
Opinion May Be Issued As A Qualified, Anadverse, Or A Disclaimer Of Opinion.
6. Differentiate Between The Roles Of The Preparer And The Auditor, And Discuss
The Different Firms That Provide Assurance Services.
It Is The Responsibility Of A Company‘S Governing Body To Ensure Thatits Financial
Statements Are Relevant, Reliable, Comparable, Understandable,And True And Fair. It Is The
Responsibility Of The Auditor To Form Anopinion On The Fair Presentation Of The Financial
Statements. In Doing,So 1- 2 Auditing: A Practical Approach, Fourth Canadian Edition
The Auditor Must Maintain Professional Scepticism And Utilize Professionaljudgement And
Due Care.
The Firms That Provide Assurance Services Include The Big-4international Firms, The
National Firms (With International Links),Local And Regional Firms, And Consulting Firms
That Tend To Specializein Assurance Of CSR And Environmental Disclosures.
7. Identify The Different Regulators, Legislation, And Regulations Surrounding
The Assurance Process.
Lom O a r C P S D | 3 08 78 4 9 5
Introduction And Overview Of Audit And Assurance 1-3
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