TEST BANK For Auditing & Assurance Services: A
r r r r r r r
Systematic Approach, 12th Edition
r r r r r
Chapters 1 - 21 Complete
r r r r
,
,Chapter r1: rAn rIntroduction rto rAssurance rand rFinancial rStatement rAuditing
Chapter r2: rThe rFinancial rStatement rAuditing rEnvironment
Chapter r3: rAudit rPlanning, rTypes rof rAudit rTests, rand rMateriality
Chapter r4: rRisk rAssessment
Chapter r5: rEvidence rand rDocumentation
Chapter r6: rInternal rControl rin ra rFinancial rStatement rAudit
Chapter r7: rAuditing rInternal rControl rover rFinancial rReporting
Chapter r8: rAudit rSampling: rAn rOverview rand rApplication rto rTests rof rControls
Chapter r9: rAudit rSampling: rAn rApplication rto rSubstantive rTests rof rAccount rBalances
Chapter r10: rAuditing rthe rRevenue rProcess
Chapter r11: rAuditing rthe rPurchasing rProcess
Chapter r12: rAuditing rthe rHuman rResource rManagement rProcess
Chapter r13: rAuditing rthe rInventory rManagement rProcess
Chapter r14: rAuditing rthe rFinancing/Investing rProcess: rPrepaid rExpenses, rIntangible rAssets, rand
rProperty, rPlant, rand rEquipment
Chapter r15: rAuditing rthe rFinancing/Investing rProcess: rLong-Term rLiabilities, rStockholders’ rEquity,
rand rIncome rStatement rAccounts
Chapter r16: rAuditing rthe rFinancing/Investing rProcess: rCash rand rInvestments
Chapter r17: rCompleting rthe rAudit rEngagement
Chapter r18: rReports ron rAudited rFinancial rStatements
Chapter r19: rProfessional rConduct, rIndependence, rand rQuality rManagement
Chapter r20: rLegal rLiability
Chapter r21: rAssurance, rAttestation, rand rInternal rAuditing rServices
, Auditing r& rAssurance rServices: rA rSystematic rApproach, r12e r(Messier)
rChapter r1 r An rIntroduction rto rAssurance rand rFinancial rStatement rAuditing
1) Auditing rfocuses ron rrules, rtechniques, rand rcomputations rrequired rto rprepare rand
ranalyze rfinancial rinformation.
ANSWER: r FALSE
rDifficulty: r1 rEasy
Topic: r The rImportance rfor rStudying rAuditing
Learning rObjective: r 01-01 rUnderstand rwhy rstudying rauditing rcan rbe rvaluable rto ryou rwhether
ror rnot ryou rplan rto rbecome ran rauditor, rand rwhy rit ris rdifferent rfrom rstudying raccounting.
Bloom's: r Remember
rAACSB: r Communication
AICPA: r BB rLegal; rFN rDecision rMaking
2) Decision rmakers rdemand rreliable rinformation rthat ris rprovided rby raccountants.
ANSWER: r TRUE
rDifficulty: r1 rEasy
Topic: r The rDemand rfor rAuditing rand rAssurance
Learning rObjective: r 01-02 rUnderstand rthe rdemand rfor rauditing rand rbe rable rto rexplain rthe
rdesired rcharacteristics rof rauditors rand raudit rservices rthrough ran ranalogy rto ra rhouse rinspector
rand ra rhouse rinspection rservice.
Bloom's: r Understand
rAACSB: r Communication
AICPA: r FN rDecision rMaking; rBB rIndustry
3) Information rasymmetry rseldom roccurs.
ANSWER: r FALSE
rDifficulty: r2 rMedium
Topic: r The rDemand rfor rAuditing rand rAssurance
Learning rObjective: r 01-02 rUnderstand rthe rdemand rfor rauditing rand rbe rable rto rexplain rthe
rdesired rcharacteristics rof rauditors rand raudit rservices rthrough ran ranalogy rto ra rhouse rinspector
rand ra rhouse rinspection rservice.
Bloom's: r Apply
AACSB: r Communication
AICPA: r BB rIndustry; rFN rReporting
r r r r r r r
Systematic Approach, 12th Edition
r r r r r
Chapters 1 - 21 Complete
r r r r
,
,Chapter r1: rAn rIntroduction rto rAssurance rand rFinancial rStatement rAuditing
Chapter r2: rThe rFinancial rStatement rAuditing rEnvironment
Chapter r3: rAudit rPlanning, rTypes rof rAudit rTests, rand rMateriality
Chapter r4: rRisk rAssessment
Chapter r5: rEvidence rand rDocumentation
Chapter r6: rInternal rControl rin ra rFinancial rStatement rAudit
Chapter r7: rAuditing rInternal rControl rover rFinancial rReporting
Chapter r8: rAudit rSampling: rAn rOverview rand rApplication rto rTests rof rControls
Chapter r9: rAudit rSampling: rAn rApplication rto rSubstantive rTests rof rAccount rBalances
Chapter r10: rAuditing rthe rRevenue rProcess
Chapter r11: rAuditing rthe rPurchasing rProcess
Chapter r12: rAuditing rthe rHuman rResource rManagement rProcess
Chapter r13: rAuditing rthe rInventory rManagement rProcess
Chapter r14: rAuditing rthe rFinancing/Investing rProcess: rPrepaid rExpenses, rIntangible rAssets, rand
rProperty, rPlant, rand rEquipment
Chapter r15: rAuditing rthe rFinancing/Investing rProcess: rLong-Term rLiabilities, rStockholders’ rEquity,
rand rIncome rStatement rAccounts
Chapter r16: rAuditing rthe rFinancing/Investing rProcess: rCash rand rInvestments
Chapter r17: rCompleting rthe rAudit rEngagement
Chapter r18: rReports ron rAudited rFinancial rStatements
Chapter r19: rProfessional rConduct, rIndependence, rand rQuality rManagement
Chapter r20: rLegal rLiability
Chapter r21: rAssurance, rAttestation, rand rInternal rAuditing rServices
, Auditing r& rAssurance rServices: rA rSystematic rApproach, r12e r(Messier)
rChapter r1 r An rIntroduction rto rAssurance rand rFinancial rStatement rAuditing
1) Auditing rfocuses ron rrules, rtechniques, rand rcomputations rrequired rto rprepare rand
ranalyze rfinancial rinformation.
ANSWER: r FALSE
rDifficulty: r1 rEasy
Topic: r The rImportance rfor rStudying rAuditing
Learning rObjective: r 01-01 rUnderstand rwhy rstudying rauditing rcan rbe rvaluable rto ryou rwhether
ror rnot ryou rplan rto rbecome ran rauditor, rand rwhy rit ris rdifferent rfrom rstudying raccounting.
Bloom's: r Remember
rAACSB: r Communication
AICPA: r BB rLegal; rFN rDecision rMaking
2) Decision rmakers rdemand rreliable rinformation rthat ris rprovided rby raccountants.
ANSWER: r TRUE
rDifficulty: r1 rEasy
Topic: r The rDemand rfor rAuditing rand rAssurance
Learning rObjective: r 01-02 rUnderstand rthe rdemand rfor rauditing rand rbe rable rto rexplain rthe
rdesired rcharacteristics rof rauditors rand raudit rservices rthrough ran ranalogy rto ra rhouse rinspector
rand ra rhouse rinspection rservice.
Bloom's: r Understand
rAACSB: r Communication
AICPA: r FN rDecision rMaking; rBB rIndustry
3) Information rasymmetry rseldom roccurs.
ANSWER: r FALSE
rDifficulty: r2 rMedium
Topic: r The rDemand rfor rAuditing rand rAssurance
Learning rObjective: r 01-02 rUnderstand rthe rdemand rfor rauditing rand rbe rable rto rexplain rthe
rdesired rcharacteristics rof rauditors rand raudit rservices rthrough ran ranalogy rto ra rhouse rinspector
rand ra rhouse rinspection rservice.
Bloom's: r Apply
AACSB: r Communication
AICPA: r BB rIndustry; rFN rReporting
