https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
TESTBANK FOR AUDITING A PRACTICAL APPROACH,
4TH CANADIAN EDITION 4TH EDITION, KINDLE EDITION
BY ROBYN MORONEY , FIONA CAMPBELL , JANE
HAMILTON , VALERIE WARREN
, TESTrrBANKrrforrrAuditingrrArrPracticalrrApproach,rr4thrrCanadianrrEditionrrMoroney,rrCampbell,rrWarren
Stuvia.comrr-
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
The Marketplace to Buy and Sell your Study Material
CHAPTER 1 r r
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANC
rr rr rr rr rr rr
E
CHAPTER LEARNING OBJECTIVES
rr rr
1. Definerranrrassurancerrengagement.
Anrrassurancerrengagementrrinvolvesrranrrassurancerrproviderrrarrivingrratanrropinionrraboutrrsome
rr informationrrbeingrrprovidedrrbyrrtheirrrclientrrtoarrthirdrrparty.rrArrfinancialrrstatementrrauditrrisrronerr
typerrofrrassuranceengagement.rrThisrrengagementrrinvolvesrranrrauditorrrarrivingrratrranrropinion
aboutrrtherrfairrrpresentationrrofrrtherrfinancialrrstatements.rrTherrauditreportrrisrraddressedrrtorrtherr
shareholdersrrofrrtherrcompanyrrbeingrraudited,butrrotherrrusersrrmayrrreadrrtherrfinancialrrstateme
nts.rrLearningrraboutauditingrrandrrassurancerrrequiresrranrrunderstandingrrofrrauditingrrandassur
ancerrterminology,rrincludingrrtermsrrsuchrrasrrauditrrrisk,rrmateriality,internalrrcontrols,rrlistedrrenti
ty,rrandrrassertions.
2. Explainrrwhyrrthererrisrrarrdemandrrforrrauditrrandrrassurancerrservices.
Financialrrstatementrrusersrrincluderrinvestorsrr(shareholders),rrsuppliers,customers,rrlenders,rre
mployees,rrgovernments,rrandrrtherrgeneralrrpublic.Theserrgroupsrrofrrusersrrdemandrrauditedrrfin
ancialrrstatementsrrbecauserroftheirrrremotenessrrfromrrtherrentity,rraccountingrrcomplexity,rrtheiri
ncentivescompetingrrwithrrthoserrofrrtherrentity‘srrmanagers,rrandrrtheirrrneedforrrreliablerrinformati
onrronrrwhichrrtorrbaserrdecisions.rrTherrtheoriesrrusedtorrdescriberrtherrdemandrrforrrauditrrandrrassu
rancerrservicesrrarerragencytheory,rrtherrinformationrrhypothesis,rrandrrtherrinsurancerrhypothesis
.
3. Differentiaterrbetweenrrtypesrrofrrassurancerrservices.
Assurancerrservicesrrincluderrfinancialrrstatementrraudits,rrcomplianceaudits,rrperformancerraudit
s,rrcomprehensiverraudits,rrinternalrraudits,andrrassurancerronrrcorporaterrsocialrrresponsibilityrr(
CSR)rrdisclosures.
4. Explainrrtherrdifferentrrlevelsrrofrrassurance.
Therrdifferentrrlevelsrrofrrassurancerrincluderrreasonablerrassurance,rrwhichisrrtherrhighestrrlevelrrofrr
assurance,rrlimitedrrassurance,rrandrrnorrassurance.Reasonablerrassurancerrisrrprovidedrronrranrr
auditrrofrrarrcompany‘sfinancialrrstatements.rrLimitedrrassurancerrisrrprovidedrrinrrarrreviewrrof
acompany‘sr r f na Dsotw
ante
l om ednbtsy:.BNRo
ade aTsEsRuSrTaUnDcIeESs|r r jp
I GH amroohvradbehd
asan
70a
@c om
gm ail.p
com nengagem
Weannttt.or r earnr r $1.236
extrarr pePrrrayegaer
A+ Distributionrrofrrthisrrdocumentrrisrrillega
l
2
, TESTrrBANKrrforrrAuditingrrArrPracticalrrApproach,rr4thrrCanadianrrEditionrrMoroney,rrCampbell,rrWarren
Stuvia.comrr-
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
The Marketplace to Buy and Sell your Study Material
5. Outlinerrdifferentrrauditrropinions
Anrrauditorrrcanrrissuerranrrunmodifiedrropinion,rralsorrknownrrasrrarrcleanreport,rrorrranrrunmodifiedrr
opinionrrwithrranrremphasisrrofrrmatterrrparagraph.Alternatively,rrarrmodifiedrropinionrrmayrrberriss
uedrrasrrarrqualified,rranadverse,rrorrrarrdisclaimerrrofrropinion.
6. Differentiaterrbetweenrrtherrrolesrrofrrtherrpreparerrrandrrtherrauditor,rrandrrdiscussrrth
errdifferentrrfirmsrrthatrrproviderrassurancerrservices.
Itrrisrrtherrresponsibilityrrofrrarrcompany‘srrgoverningrrbodyrrtorrensurerrthatitsrrfinancialrrstatementsr
r arerrrelevant,rrreliable,rrcomparable,rrunderstandable,andrrtruerrandrrfair.rrItrrisrrtherrresponsibilityrrof
rr therrauditorrrtorrformrranopinionrronrrtherrfairrrpresentationrrofrrtherrfinancialrrstatements.rrInrrdoing,s
orr1-rr2rrAuditing:rrArrPracticalrrApproach,rrFourthrrCanadianrrEdition
therrauditorrrmustrrmaintainrrprofessionalrrscepticismrrandrrutilizerrprofessionaljudgementrrandrrduer
r care.
TherrfirmsrrthatrrproviderrassurancerrservicesrrincluderrtherrBig-
4internationalrrfirms,rrtherrnationalrrfirmsrr(withrrinternationalrrlinks),localrrandrrregionalrrfirms,rrandrr
consultingrrfirmsrrthatrrtendrrtorrspecializeinrrassurancerrofrrCSRrrandrrenvironmentalrrdisclosures.
7. Identifyrrtherrdifferentrrregulators,rrlegislation,rrandrrregulationsrrsurroundingrrthe
rr assurancerrprocess.
lO M rr rr rr rr rr rrrr rr rr
o AR c P S D | 30 8 78 49 5
IntroductionrrandrrOverviewrrofrrAuditrrandrrAssurance 1rr-rr3
Downloadedrrby:rrBRIGHTERSTUDIESrr| Wantrrtorrearnrr$1.23
6
A+ Distributionrrofrrthisrrdocumentrrisrrillegal
3
extrarr pe rrr ye a r
, TESTrrBANKrrforrrAuditingrrArrPracticalrrApproach,rr4thrrCanadianrrEditionrrMoroney,rrCampbell,rrWarren
Stuvia.comrr-
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
The Marketplace to Buy and Sell your Study Material
TRUE-FALSE STATEMENTS rr
1. Onlyrrcurrentrrinvestorsrr(notrrpotentialrrinvestors)rrarerrconsideredrrtorrberrusersrrofrrtherrfinancial
rr statements.
Answer:rrFalse
Bloomcode:rrKnowledgerrDiffic
ulty:rrEasy
LearningrrObjective:rrExplainrrwhyrrthererrisrrarrdemandrrforrrauditrrandrrassurancerrservices.rrSecti
onrrReference:rr1.2rrDemandrrforrrauditrrandrrassurancerrservices
CPArrCompetency:rrAuditrrandrrAssurancerrAACS
B:rrAnalytic
2. Insurancerrhypothesisrrisrrarrmeansrrwherebyrrtherrinvestorrrcanrrguaranteerrtherrsuccessrrofrrtheir
rr investment.
Answer:rrFalse
Bloomcode:rrComprehensionrr
Difficulty:rrMedium
LearningrrObjective:rrExplainrrwhyrrthererrisrrarrdemandrrforrrauditrrandrrassurancerrservices.rrSecti
onrrReference:rr1.2rrDemandrrforrrauditrrandrrassurancerrservices
CPArrCompetency:rrAuditrrandrrAssurancerrAACS
B:rrAnalytic
3. Arrcompliancerrauditrrinvolvesrrgatheringrrevidencerrtorrascertainrrwhetherrrtherrpersonrrorrrentity
rr underrrreviewrrhasrrfollowedrrtherrrules,rrpolicies,rrprocedures,rrlawsrrandrrregulationsrrwithrrwhic
hrrtheyrrmustrrconform
Answer:rrTrue
Bloomcode:rrComprehensionrr
Difficulty:rrMedium
LearningrrObjective:rrDifferentiaterrbetweenrrtypesrrofrrassurancerrservices.rrSecti
onrrReference:rr1.3rrDifferentrrassurancerrservices
CPArrCompetency:rrAuditrrandrrAssurancerrAACS
B:rrAnalytic
Downloadedrrby:rrBRIGHTERSTUDIESrr| Wantrrtorrearnrr$1.23
6
A+ Distributionrrofrrthisrrdocumentrrisrrillegal
3
extrarr pe rrr ye a r
TESTBANK FOR AUDITING A PRACTICAL APPROACH,
4TH CANADIAN EDITION 4TH EDITION, KINDLE EDITION
BY ROBYN MORONEY , FIONA CAMPBELL , JANE
HAMILTON , VALERIE WARREN
, TESTrrBANKrrforrrAuditingrrArrPracticalrrApproach,rr4thrrCanadianrrEditionrrMoroney,rrCampbell,rrWarren
Stuvia.comrr-
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
The Marketplace to Buy and Sell your Study Material
CHAPTER 1 r r
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANC
rr rr rr rr rr rr
E
CHAPTER LEARNING OBJECTIVES
rr rr
1. Definerranrrassurancerrengagement.
Anrrassurancerrengagementrrinvolvesrranrrassurancerrproviderrrarrivingrratanrropinionrraboutrrsome
rr informationrrbeingrrprovidedrrbyrrtheirrrclientrrtoarrthirdrrparty.rrArrfinancialrrstatementrrauditrrisrronerr
typerrofrrassuranceengagement.rrThisrrengagementrrinvolvesrranrrauditorrrarrivingrratrranrropinion
aboutrrtherrfairrrpresentationrrofrrtherrfinancialrrstatements.rrTherrauditreportrrisrraddressedrrtorrtherr
shareholdersrrofrrtherrcompanyrrbeingrraudited,butrrotherrrusersrrmayrrreadrrtherrfinancialrrstateme
nts.rrLearningrraboutauditingrrandrrassurancerrrequiresrranrrunderstandingrrofrrauditingrrandassur
ancerrterminology,rrincludingrrtermsrrsuchrrasrrauditrrrisk,rrmateriality,internalrrcontrols,rrlistedrrenti
ty,rrandrrassertions.
2. Explainrrwhyrrthererrisrrarrdemandrrforrrauditrrandrrassurancerrservices.
Financialrrstatementrrusersrrincluderrinvestorsrr(shareholders),rrsuppliers,customers,rrlenders,rre
mployees,rrgovernments,rrandrrtherrgeneralrrpublic.Theserrgroupsrrofrrusersrrdemandrrauditedrrfin
ancialrrstatementsrrbecauserroftheirrrremotenessrrfromrrtherrentity,rraccountingrrcomplexity,rrtheiri
ncentivescompetingrrwithrrthoserrofrrtherrentity‘srrmanagers,rrandrrtheirrrneedforrrreliablerrinformati
onrronrrwhichrrtorrbaserrdecisions.rrTherrtheoriesrrusedtorrdescriberrtherrdemandrrforrrauditrrandrrassu
rancerrservicesrrarerragencytheory,rrtherrinformationrrhypothesis,rrandrrtherrinsurancerrhypothesis
.
3. Differentiaterrbetweenrrtypesrrofrrassurancerrservices.
Assurancerrservicesrrincluderrfinancialrrstatementrraudits,rrcomplianceaudits,rrperformancerraudit
s,rrcomprehensiverraudits,rrinternalrraudits,andrrassurancerronrrcorporaterrsocialrrresponsibilityrr(
CSR)rrdisclosures.
4. Explainrrtherrdifferentrrlevelsrrofrrassurance.
Therrdifferentrrlevelsrrofrrassurancerrincluderrreasonablerrassurance,rrwhichisrrtherrhighestrrlevelrrofrr
assurance,rrlimitedrrassurance,rrandrrnorrassurance.Reasonablerrassurancerrisrrprovidedrronrranrr
auditrrofrrarrcompany‘sfinancialrrstatements.rrLimitedrrassurancerrisrrprovidedrrinrrarrreviewrrof
acompany‘sr r f na Dsotw
ante
l om ednbtsy:.BNRo
ade aTsEsRuSrTaUnDcIeESs|r r jp
I GH amroohvradbehd
asan
70a
@c om
gm ail.p
com nengagem
Weannttt.or r earnr r $1.236
extrarr pePrrrayegaer
A+ Distributionrrofrrthisrrdocumentrrisrrillega
l
2
, TESTrrBANKrrforrrAuditingrrArrPracticalrrApproach,rr4thrrCanadianrrEditionrrMoroney,rrCampbell,rrWarren
Stuvia.comrr-
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
The Marketplace to Buy and Sell your Study Material
5. Outlinerrdifferentrrauditrropinions
Anrrauditorrrcanrrissuerranrrunmodifiedrropinion,rralsorrknownrrasrrarrcleanreport,rrorrranrrunmodifiedrr
opinionrrwithrranrremphasisrrofrrmatterrrparagraph.Alternatively,rrarrmodifiedrropinionrrmayrrberriss
uedrrasrrarrqualified,rranadverse,rrorrrarrdisclaimerrrofrropinion.
6. Differentiaterrbetweenrrtherrrolesrrofrrtherrpreparerrrandrrtherrauditor,rrandrrdiscussrrth
errdifferentrrfirmsrrthatrrproviderrassurancerrservices.
Itrrisrrtherrresponsibilityrrofrrarrcompany‘srrgoverningrrbodyrrtorrensurerrthatitsrrfinancialrrstatementsr
r arerrrelevant,rrreliable,rrcomparable,rrunderstandable,andrrtruerrandrrfair.rrItrrisrrtherrresponsibilityrrof
rr therrauditorrrtorrformrranopinionrronrrtherrfairrrpresentationrrofrrtherrfinancialrrstatements.rrInrrdoing,s
orr1-rr2rrAuditing:rrArrPracticalrrApproach,rrFourthrrCanadianrrEdition
therrauditorrrmustrrmaintainrrprofessionalrrscepticismrrandrrutilizerrprofessionaljudgementrrandrrduer
r care.
TherrfirmsrrthatrrproviderrassurancerrservicesrrincluderrtherrBig-
4internationalrrfirms,rrtherrnationalrrfirmsrr(withrrinternationalrrlinks),localrrandrrregionalrrfirms,rrandrr
consultingrrfirmsrrthatrrtendrrtorrspecializeinrrassurancerrofrrCSRrrandrrenvironmentalrrdisclosures.
7. Identifyrrtherrdifferentrrregulators,rrlegislation,rrandrrregulationsrrsurroundingrrthe
rr assurancerrprocess.
lO M rr rr rr rr rr rrrr rr rr
o AR c P S D | 30 8 78 49 5
IntroductionrrandrrOverviewrrofrrAuditrrandrrAssurance 1rr-rr3
Downloadedrrby:rrBRIGHTERSTUDIESrr| Wantrrtorrearnrr$1.23
6
A+ Distributionrrofrrthisrrdocumentrrisrrillegal
3
extrarr pe rrr ye a r
, TESTrrBANKrrforrrAuditingrrArrPracticalrrApproach,rr4thrrCanadianrrEditionrrMoroney,rrCampbell,rrWarren
Stuvia.comrr-
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
The Marketplace to Buy and Sell your Study Material
TRUE-FALSE STATEMENTS rr
1. Onlyrrcurrentrrinvestorsrr(notrrpotentialrrinvestors)rrarerrconsideredrrtorrberrusersrrofrrtherrfinancial
rr statements.
Answer:rrFalse
Bloomcode:rrKnowledgerrDiffic
ulty:rrEasy
LearningrrObjective:rrExplainrrwhyrrthererrisrrarrdemandrrforrrauditrrandrrassurancerrservices.rrSecti
onrrReference:rr1.2rrDemandrrforrrauditrrandrrassurancerrservices
CPArrCompetency:rrAuditrrandrrAssurancerrAACS
B:rrAnalytic
2. Insurancerrhypothesisrrisrrarrmeansrrwherebyrrtherrinvestorrrcanrrguaranteerrtherrsuccessrrofrrtheir
rr investment.
Answer:rrFalse
Bloomcode:rrComprehensionrr
Difficulty:rrMedium
LearningrrObjective:rrExplainrrwhyrrthererrisrrarrdemandrrforrrauditrrandrrassurancerrservices.rrSecti
onrrReference:rr1.2rrDemandrrforrrauditrrandrrassurancerrservices
CPArrCompetency:rrAuditrrandrrAssurancerrAACS
B:rrAnalytic
3. Arrcompliancerrauditrrinvolvesrrgatheringrrevidencerrtorrascertainrrwhetherrrtherrpersonrrorrrentity
rr underrrreviewrrhasrrfollowedrrtherrrules,rrpolicies,rrprocedures,rrlawsrrandrrregulationsrrwithrrwhic
hrrtheyrrmustrrconform
Answer:rrTrue
Bloomcode:rrComprehensionrr
Difficulty:rrMedium
LearningrrObjective:rrDifferentiaterrbetweenrrtypesrrofrrassurancerrservices.rrSecti
onrrReference:rr1.3rrDifferentrrassurancerrservices
CPArrCompetency:rrAuditrrandrrAssurancerrAACS
B:rrAnalytic
Downloadedrrby:rrBRIGHTERSTUDIESrr| Wantrrtorrearnrr$1.23
6
A+ Distributionrrofrrthisrrdocumentrrisrrillegal
3
extrarr pe rrr ye a r
