TEST BANK Auditing: A Practical Approach with Data Analytics 1st Edition by Campbell ISBN 978-1119626688 COMPLETE GUIDE | A+ GRADE ASSURED!!! LATEST UPDATE!!!! GUARANTEED SUCCESS!!!!

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, Table of Contents i i




Chapter 1: Introduction and Overview of Audit and Assurance Chapter 2: Professiona
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lism and Professional Responsibilities Chapter 3: Risk Assessment Part I: Audit Ris
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k and Audit Strategy Chapter 4: Risk Assessment Part II: Understanding the Client
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Chapter 5: Audit i i
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Chapter 6: Gaining an Understanding of the Client's System of Internal
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Control
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Chapter 7: Audit Data Analytics i i
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Chapter 8: Risk Response: Performing Tests of Controls Chapter 9:
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i Risk Response: Performing Substantive Procedures
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Chapter 10: Risk Response: Evaluating Audit Data Analytics and Audit
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Sampling
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Chapter 11: Auditing the Revenue Process
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Chapter 12: Auditing the Purchasing and Payroll Processes Chapter 13:
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Auditing Various Balance Sheet Accounts (and Related
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Income Statement Accounts)
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Chapter 14: Completing the Auditi i
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i H Chapter 15: Reporting on the Audit
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, Chapter1
IntroductionandOverviewofAudit and H




Assurance
Question Type: True or False
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1. GAAPand IFRS are examples of applicable financial reporting framework.
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPAFC: Reporting, AACSB: Communication, Learning Ob
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jective: LO1.1, Solution: The applicable financial reporting
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framework refers to the set of standards used H H H H H H H




in preparing the historical financial statements, such as GAAP, IFRS or a Federal Income Tax Basi
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s ofH Accounting.



2. Review of financial forecasts falls under attestation services.
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy,AICPA FC: Measurement Analysis and Interpretation, AAC
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SB: Ethics, Learning Objective: LO1.1, Solution: Attestation services (under
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the umbrella of assurance services) i H H H H H




nclude review of historical financial statements, review of
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examination of internal control. H H




3. Within a U.S. context, the applicable financial reporting framework is typically Generally Acc
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eptedAccountingPrinciples(GAAP). H H




A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy,AICPA FC: Measurement Analysis and Interpretati
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on,
AACSB: Ethics, Learning Objective: LO1.2, Solution: Within a U.S. context, the app H H H H H H H H H H H




licable financial H




reporting framework is typically generally accepted accounting principles (GAAP) H H H H H H H H




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, 4. Private companies, or non-
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issuers, are not required by the U.S. government to have an annual financialstatementaudit
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPAFC: Reporting, AACSB: Analytic, Learning Obj
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ective: LO1.2, Solution: Private companies, or non-issuers, are not required by the
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U.S. government to have an annual financial statement audit, but often other interested users, such as a bank
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or lender, may request that a private company provide audited financial statements.
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5. One of the reasons there is a demand for financial statement audits is that users of financial state
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ments often lack accounting and legal knowledge to fully understand complex accountin
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g and disclosure choices.
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A. True
B. False
Answer:A, Taxonomy: Comprehension, Difficulty: Easy,AICPAPC: Communication,AACSB:
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Analytic, Learning H H




Objective: LO1.3, Solution: Complexity: Financial statements are complex, the H H H H H H H H




amounts are often affected H H H




by significant estimates, and the disclosures often require significant
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knowledge andexperience to H H H




evaluate. Most financial statement users do not have the accounting and legal knowledge to H H H H H H H H H H H H H H




assess the H




reasonableness of complex accounting and disclosure choices being made by the company. H H H H H H H H H H H




6. In financial accounting, the balance sheet is a statement of financial position
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPAPC: Communication, AACSB: Analytic, Learning Obj
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ective: LO1.3, Solution: In financial accounting, the financial statements include the balance sheet (statem
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ent of financial position), income statement (statement of comprehensive income), statement of cash flo
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ws, statement of changes in equity and accompanying notes.
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7. Business valuation falls within the purview of non-assurance services.
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A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy,AICPAFC: MeasurementAnalysis and Interpretation, AA
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CSB: Analytic, Learning Objective: LO1.4, Solution: Many of these accounting firms provide non-
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assurance (or non-audit) services as well as assurance services. These non-
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include management consulting, business valuation, mergers and H H H H H




acquisitions, insolvency, tax and accounting services. H H H H




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