TESTBANKFOR AUDITINGAPRACTICALAPPROACH,
g
4THCANADIANEDITION4THEDITION,KINDLEEDITIONBY
, , , , , , , ,
, ROBYNMORONEY,FIONA CAMPBELL,JANEHAMILTON
g
,VALERIE WARREN
g
, TESTBANKforAuditingAPracticalApproach,4thCanadianEditionMoroney,Campbell,Warren
, , , , , , , , , ,
Stuvia.com-TheMarketplacetoBuy andSellyourStudyMaterial , , , , , , , , , ,
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
CHAPTER 1 ,
INTRODUCTIONANDOVERVIEWOFAUDITANDASSURANCE ,
CHAPTERLEARNINGOBJECTIVES
1. Defineanassurance engagement. g
Anassuranceengagement involvesanassuranceprovider arrivingatanopinionaboutsome
, , , , , ,
, informationbeingprovidedbytheirclienttoathirdparty.Afinancialstatementauditisonetype of
, , , , , , , , , , , , , , , ,
assuranceengagement.Thisengagementinvolvesanauditorarrivingatanopinionabout thefair
, , , , , , , , , , , ,
presentationofthefinancialstatements.Theauditreportisaddressedtothe shareholdersofthe
, , , , , , , , , , , , , ,
companybeingaudited,butotherusersmayreadthefinancialstatements. Learningaboutauditing
, , , , , , , , , , , ,
andassurancerequiresanunderstandingofauditingandassurance terminology,includingterms
, , , , , , , , , , ,
suchasauditrisk,materiality,internalcontrols,listedentity,and assertions.
, , , , , , , , , ,
2. Explainwhythereisademandforauditandassuranceservices. , ,
Financialstatement usersinclude investors (shareholders), suppliers,customers,lenders,
, , , , , , ,
, employees,governments,andthegeneralpublic.Thesegroupsofusersdemandaudited financial
, , , , , , , , , , ,
statementsbecauseoftheirremotenessfromtheentity,accountingcomplexity,
, , , , , , , , ,
, theirincentivescompetingwiththoseoftheentity‘smanagers,andtheirneedforreliable , , , , , , , , , ,
, informationonwhichtobasedecisions.Thetheoriesusedtodescribethedemandforauditand
, , , , , , ,
, assuranceservicesareagencytheory,theinformationhypothesis,andtheinsurance hypothesis.
, , , , , , , , , ,
3. Differentiatebetweentypesofassuranceservices. g
Assuranceservicesincludefinancialstatement audits,complianceaudits,performanceaudits,
, g , ,
, comprehensiveaudits,internalaudits,andassuranceoncorporatesocialresponsibility(CSR) , , , , , , , , ,
, disclosures.
4. Explainthedifferentlevelsofassurance. g
Thedifferent levelsof assuranceincludereasonableassurance,whichisthehighestlevelof
g , , , , , , ,
, assurance,limitedassurance,andnoassurance.Reasonableassuranceisprovidedonan auditof
, , , , , , , , , , , ,
acompany‘sfinancialstatements.Limitedassuranceisprovidedinareviewof
, , , , , , , , , , ,
acompany‘s fna , , Dsotw
ante
lom ednbtsy:.BNRo
ade aTsEsRuSrTaUnDcIeESs|
IGH , , jp
amroohvradbehd
a san
70a
@c om
gm ail.p
com nengagem
We nttt.o earn $1.236
an , ,
extrapePrayegaer?
A+ Distributionofthisdocumentisillegal , , , , , ,
2
, TESTBANKforAuditingAPracticalApproach,4thCanadianEditionMoroney,Campbell,Warren
, , , , , , , , , ,
Stuvia.com-TheMarketplacetoBuy andSellyourStudyMaterial
, , , , , , , , , ,
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
5. Outlinedifferentauditopinions g
Anauditorcanissueanunmodifiedopinion, alsoknownasacleanreport, oranunmodified opinion
, , , , , , , , , ,
withanemphasisofmatterparagraph.Alternatively,amodifiedopinionmaybeissued asa
, , , , , , , , , , , , , ,
qualified, anadverse,or adisclaimerofopinion.
, , , , , , ,
6. Differentiatebetweentherolesofthepreparerandtheauditor,anddiscussthe , , ,
, different firmsthat provide assurance services.
, , , ,
Itistheresponsibilityofacompany‘sgoverningbodytoensurethatitsfinancialstatementsare
, , , , , , , , , , , , , ,
, relevant,reliable,comparable,understandable,andtrueandfair.Itistheresponsibilityof the
, , , , ,
, auditortoformanopiniononthefairpresentationofthefinancialstatements.Indoing,so1-2
, , , , , , , , , , , , , , ,
, Auditing: A Practical Approach, Fourth Canadian Edition
, g , , , ,
theauditormust maintainprofessionalscepticismandutilizeprofessionaljudgementanddue care.g , , , ,
Thefirmsthat provide assuranceservices includetheBig-4internationalfirms,the national firms
, , , , ,
, (with international links),local and regional firms, and consulting firms that tend to specializein
, , , , , , , , , , , ,
assurance of CSR and environmental disclosures.
, , , , , ,
7. Identifythedifferentregulators,legislation,andregulationssurroundingthe ,
, assuranceprocess. ,
lO M , , , , , ,o ,A R , , , , , , ,c , , , , ,P , , , , , ,S , , , , , ,D , , , , , ,| , , , , , ,3 ,0 ,8 ,7 ,8 , , , , , ,4 ,9 , , , , , ,5
IntroductionandOverviewofAuditandAssurance , 1- 3
, ,
Wanttoearn$1.236
, , ,
extrapePrayegaer?3
A+ ,
, TESTBANKforAuditingAPracticalApproach,4thCanadianEditionMoroney,Campbell,Warren
, , , , , , , , , ,
Stuvia.com-TheMarketplacetoBuy andSellyourStudyMaterial
, , , , , , , , , ,
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
TRUE-FALSESTATEMENTS
1. Only current investors (not potentialinvestors) are consideredto beusersof thefinancial
g , , , , , ,
statements.
,
Answer:False ,
Bloomcode:Knowledge
Difficulty:Easy
, ,
LearningObjective:Explainwhythereisademandforauditandassuranceservices.Section
, , , , , , , ,
, Reference:1.2Demandfor audit and assuranceservices
, , , , , , ,
CPA Competency:AuditandAssuranceAACSB:
g , ,
Analytic
2. Insurancehypothesis isa meanswhereby the investor canguarantee thesuccess of their
, , , , , , , ,
investment.
,
Answer:False ,
Bloomcode:Comprehension
Difficulty:Medium
, ,
LearningObjective:Explainwhythereisademandforauditandassuranceservices.Section
, , , , , , , ,
, Reference:1.2Demandfor audit and assuranceservices
, , , , , , ,
CPA Competency:AuditandAssuranceAACSB:
g , ,
Analytic
3. Acomplianceaudit involvesgatheringevidencetoascertain whether the person or entity
, , , g , ,
, under reviewhas followed the rules, policies, procedures,laws and regulations with which they
, , , , , , , , , , , , ,
mustconform
, ,
Answer:True
Bloomcode:Comprehension
Difficulty:Medium
, ,
LearningObjective:Differentiatebetweentypesofassuranceservices.Section Reference:
, , , ,
1.3 Differentassuranceservices
, , , ,
CPA Competency:AuditandAssuranceAACSB:
g , ,
Analytic
,
Wanttoearn$1.236
, , ,
extrapePrayegaer?3
A+ ,
g
4THCANADIANEDITION4THEDITION,KINDLEEDITIONBY
, , , , , , , ,
, ROBYNMORONEY,FIONA CAMPBELL,JANEHAMILTON
g
,VALERIE WARREN
g
, TESTBANKforAuditingAPracticalApproach,4thCanadianEditionMoroney,Campbell,Warren
, , , , , , , , , ,
Stuvia.com-TheMarketplacetoBuy andSellyourStudyMaterial , , , , , , , , , ,
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
CHAPTER 1 ,
INTRODUCTIONANDOVERVIEWOFAUDITANDASSURANCE ,
CHAPTERLEARNINGOBJECTIVES
1. Defineanassurance engagement. g
Anassuranceengagement involvesanassuranceprovider arrivingatanopinionaboutsome
, , , , , ,
, informationbeingprovidedbytheirclienttoathirdparty.Afinancialstatementauditisonetype of
, , , , , , , , , , , , , , , ,
assuranceengagement.Thisengagementinvolvesanauditorarrivingatanopinionabout thefair
, , , , , , , , , , , ,
presentationofthefinancialstatements.Theauditreportisaddressedtothe shareholdersofthe
, , , , , , , , , , , , , ,
companybeingaudited,butotherusersmayreadthefinancialstatements. Learningaboutauditing
, , , , , , , , , , , ,
andassurancerequiresanunderstandingofauditingandassurance terminology,includingterms
, , , , , , , , , , ,
suchasauditrisk,materiality,internalcontrols,listedentity,and assertions.
, , , , , , , , , ,
2. Explainwhythereisademandforauditandassuranceservices. , ,
Financialstatement usersinclude investors (shareholders), suppliers,customers,lenders,
, , , , , , ,
, employees,governments,andthegeneralpublic.Thesegroupsofusersdemandaudited financial
, , , , , , , , , , ,
statementsbecauseoftheirremotenessfromtheentity,accountingcomplexity,
, , , , , , , , ,
, theirincentivescompetingwiththoseoftheentity‘smanagers,andtheirneedforreliable , , , , , , , , , ,
, informationonwhichtobasedecisions.Thetheoriesusedtodescribethedemandforauditand
, , , , , , ,
, assuranceservicesareagencytheory,theinformationhypothesis,andtheinsurance hypothesis.
, , , , , , , , , ,
3. Differentiatebetweentypesofassuranceservices. g
Assuranceservicesincludefinancialstatement audits,complianceaudits,performanceaudits,
, g , ,
, comprehensiveaudits,internalaudits,andassuranceoncorporatesocialresponsibility(CSR) , , , , , , , , ,
, disclosures.
4. Explainthedifferentlevelsofassurance. g
Thedifferent levelsof assuranceincludereasonableassurance,whichisthehighestlevelof
g , , , , , , ,
, assurance,limitedassurance,andnoassurance.Reasonableassuranceisprovidedonan auditof
, , , , , , , , , , , ,
acompany‘sfinancialstatements.Limitedassuranceisprovidedinareviewof
, , , , , , , , , , ,
acompany‘s fna , , Dsotw
ante
lom ednbtsy:.BNRo
ade aTsEsRuSrTaUnDcIeESs|
IGH , , jp
amroohvradbehd
a san
70a
@c om
gm ail.p
com nengagem
We nttt.o earn $1.236
an , ,
extrapePrayegaer?
A+ Distributionofthisdocumentisillegal , , , , , ,
2
, TESTBANKforAuditingAPracticalApproach,4thCanadianEditionMoroney,Campbell,Warren
, , , , , , , , , ,
Stuvia.com-TheMarketplacetoBuy andSellyourStudyMaterial
, , , , , , , , , ,
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
5. Outlinedifferentauditopinions g
Anauditorcanissueanunmodifiedopinion, alsoknownasacleanreport, oranunmodified opinion
, , , , , , , , , ,
withanemphasisofmatterparagraph.Alternatively,amodifiedopinionmaybeissued asa
, , , , , , , , , , , , , ,
qualified, anadverse,or adisclaimerofopinion.
, , , , , , ,
6. Differentiatebetweentherolesofthepreparerandtheauditor,anddiscussthe , , ,
, different firmsthat provide assurance services.
, , , ,
Itistheresponsibilityofacompany‘sgoverningbodytoensurethatitsfinancialstatementsare
, , , , , , , , , , , , , ,
, relevant,reliable,comparable,understandable,andtrueandfair.Itistheresponsibilityof the
, , , , ,
, auditortoformanopiniononthefairpresentationofthefinancialstatements.Indoing,so1-2
, , , , , , , , , , , , , , ,
, Auditing: A Practical Approach, Fourth Canadian Edition
, g , , , ,
theauditormust maintainprofessionalscepticismandutilizeprofessionaljudgementanddue care.g , , , ,
Thefirmsthat provide assuranceservices includetheBig-4internationalfirms,the national firms
, , , , ,
, (with international links),local and regional firms, and consulting firms that tend to specializein
, , , , , , , , , , , ,
assurance of CSR and environmental disclosures.
, , , , , ,
7. Identifythedifferentregulators,legislation,andregulationssurroundingthe ,
, assuranceprocess. ,
lO M , , , , , ,o ,A R , , , , , , ,c , , , , ,P , , , , , ,S , , , , , ,D , , , , , ,| , , , , , ,3 ,0 ,8 ,7 ,8 , , , , , ,4 ,9 , , , , , ,5
IntroductionandOverviewofAuditandAssurance , 1- 3
, ,
Wanttoearn$1.236
, , ,
extrapePrayegaer?3
A+ ,
, TESTBANKforAuditingAPracticalApproach,4thCanadianEditionMoroney,Campbell,Warren
, , , , , , , , , ,
Stuvia.com-TheMarketplacetoBuy andSellyourStudyMaterial
, , , , , , , , , ,
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
TRUE-FALSESTATEMENTS
1. Only current investors (not potentialinvestors) are consideredto beusersof thefinancial
g , , , , , ,
statements.
,
Answer:False ,
Bloomcode:Knowledge
Difficulty:Easy
, ,
LearningObjective:Explainwhythereisademandforauditandassuranceservices.Section
, , , , , , , ,
, Reference:1.2Demandfor audit and assuranceservices
, , , , , , ,
CPA Competency:AuditandAssuranceAACSB:
g , ,
Analytic
2. Insurancehypothesis isa meanswhereby the investor canguarantee thesuccess of their
, , , , , , , ,
investment.
,
Answer:False ,
Bloomcode:Comprehension
Difficulty:Medium
, ,
LearningObjective:Explainwhythereisademandforauditandassuranceservices.Section
, , , , , , , ,
, Reference:1.2Demandfor audit and assuranceservices
, , , , , , ,
CPA Competency:AuditandAssuranceAACSB:
g , ,
Analytic
3. Acomplianceaudit involvesgatheringevidencetoascertain whether the person or entity
, , , g , ,
, under reviewhas followed the rules, policies, procedures,laws and regulations with which they
, , , , , , , , , , , , ,
mustconform
, ,
Answer:True
Bloomcode:Comprehension
Difficulty:Medium
, ,
LearningObjective:Differentiatebetweentypesofassuranceservices.Section Reference:
, , , ,
1.3 Differentassuranceservices
, , , ,
CPA Competency:AuditandAssuranceAACSB:
g , ,
Analytic
,
Wanttoearn$1.236
, , ,
extrapePrayegaer?3
A+ ,
