Test Bank for Auditing assurance services a systematic approach 10th edition by William Messier Jr All Chapters 1-21 Complete

Auditing & Assurance Services
vc vc vc




TEST BANK
vc vc




Auditing & Assurance Services: A Systematic
vc vc vc vc vc




Approach, 11th Edition Chapters 1 - 21
vc vc vc vc vc vc vc vc

,Auditing & Assurance Services vc vc vc




Chapter 1: An Introduction to Assurance and Financial Statement Auditing
vc vc vc vc vc vc vc vc vc




Chapter 2: The Financial Statement Auditing Environment
vc vc vc vc vc vc




Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
vc vc vc vc vc vc vc vc vc




Chapter 4: Risk Assessment
vc vc vc




Chapter 5: Evidence and Documentation
vc vc vc vc




Chapter 6: Internal Control in a Financial Statement Audit
vc vc vc vc vc vc vc vc




Chapter 7: Auditing Internal Control over Financial Reporting
vc vc vc vc vc vc vc




Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls
vc vc vc vc vc vc vc vc vc vc vc




Chapter 9: Audit Sampling: An Application to Substantive Tests of Account Balances
vc vc vc vc vc vc vc vc vc vc vc




Chapter 10: Auditing the Revenue Process
vc vc vc vc vc




Chapter 11: Auditing the Purchasing Process
vc vc vc vc vc




Chapter 12: Auditing the Human Resource Management Process
vc vc vc vc vc vc vc




Chapter 13: Auditing the Inventory Management Process
vc vc vc vc vc vc




Chapter 14: Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets,
vc vc vc vc vc vc vc vc vc




and Property, Plant, and Equipment
vc vc vc vc vc




Chapter 15: Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders’
vc vc vc vc vc vc vc vc




Equity, and Income Statement Accounts
vc vc vc vc vc




Chapter 16: Auditing the Financing/Investing Process: Cash and Investments
vc vc vc vc vc vc vc vc




Chapter 17: Completing the Audit Engagement
vc vc vc vc vc




Chapter 18: Reports on Audited Financial Statements
vc vc vc vc vc vc




Chapter 19: Professional Conduct, Independence, and Quality Management
vc vc vc vc vc vc vc




Chapter 20: Legal Liability
vc vc vc




Chapter 21: Assurance, Attestation, and Internal Auditing Services
vc vc vc vc vc vc vc

,Auditing & Assurance Services vc vc vc




Chapter 01
v c cv




An Introduction to Assurance and Financial Statement Auditing
v c v c v c v c v c v c v c




True / False Questions
v c v c v c




1. Independence standards are required for audits of public companies, but not for
vc vc vc vc vc vc vc vc vc vc vc




auditsof private companies.
vc cv vc vc




True False

2. Decision makers demand reliable information that is provided by accountants.
vc vc vc vc vc vc vc vc vc




True False

3. Information asymmetry seldom occurs. v c v c v c




True False

4. Conflicts of interest often occur between absentee owners and managers.
vc vc vc vc vc vc vc vc vc




True False

5. Auditing services and attestation services are the same.
vc vc vc vc vc vc vc




True False

6. Auditing is a type of attest service.
vc vc vc vc vc vc




True False

7. Testing all transactions that occurred during the period is cost prohibitive.
vc vc vc vc vc vc vc vc vc vc




True False




Multiple Choice Questions
vc vc

, Auditing & Assurance Services vc vc vc




8. Why do auditors generally use a sampling approach to evidence gathering?
vc vc vc vc vc vc vc vc vc vc




A. Auditors are experts and do not need to look at much to know whether the vc vc vc vc vc vc vc vc vc vc vc vc vc vc




financialstatements are correct or not.
vc cv vc vc vc vc




B. Auditors must balance the cost of the audit with the need vc vc vc vc vc vc vc vc vc vc




forprecision.
vc cv




C. Auditors must limit their exposure to their auditee to vc vc vc vc vc vc vc vc




maintainindependence.
vc cv




D. The auditor's relationship with the auditee is generally adversarial, so the auditor
vc vc vc vc vc vc vc vc vc vc vc




willnot have access to all of the financial information of the company.
vc cv vc vc vc vc vc vc vc vc vc vc vc




9. Which of the following statements best describes a relationship between sample size
vc vc vc vc vc vc vc vc vc vc vc




andother elements of auditing?
vc cv vc vc vc




A. If materiality increases, so will
v c v c v c v c




thesample size.
v c cv vc




B. If the desired level of assurance increases, sample sizes can
vc vc vc vc vc vc vc vc vc




besmaller.
vc cv




C. If materiality decreases, sample size will need
vc vc vc vc vc vc




toincrease.
vc cv




D. There is no relationship between sample size and materiality or the desired
vc vc vc vc vc vc vc vc vc vc vc




levelof assurance.
vc cv vc




10. Which of the following statements about the study of auditing is NOT true?
vc vc vc vc vc vc vc vc vc vc vc vc




A. The study of auditing can be valuable to future accountants and business
vc vc vc vc vc vc vc vc vc vc vc




decisionmakers whether or not they plan to become auditors.
vc cv vc vc vc vc vc vc vc vc




B. The study of auditing focuses on learning the analytical and logical skills necessary
vc vc vc vc vc vc vc vc vc vc vc vc




toevaluate the relevance and reliability of information.
vc cv vc vc vc vc vc vc




C. The study of auditing focuses on learning the rules, techniques, and
vc vc vc vc vc vc vc vc vc vc




computations required to analyze financial statements.
vc cv vc vc vc vc




D. The study of auditing begins with the understanding of a coherent logical framework
vc vc vc vc vc vc vc vc vc vc vc vc




and techniques useful for gathering and analyzing evidence about others' assertions.
vc vc vc vc vc vc vc vc vc vc vc




11. The basic purpose of a financial statement audit is to
vc vc vc vc vc vc vc vc vc




A. Detect cv




fraud.
B. Examine individual transactions so that the auditor may certify as vc vc vc vc vc vc vc vc vc




totheir validity.
vc cv vc




C. Provide assurance regarding whether the auditee's financial statements
v c v c v c v c v c v c vc




arefairly stated.
v c cv vc




D. Assure the consistent application of correct vc vc vc vc vc




accountingprocedures.
vc cv