TEST BANK for Auditing: A Practical Approach with Data Analytics 2nd Edition by Laura Davis Wiley, Raymond N. Johnson and Robyn Moroney ISBN-. All Chapters 1-16

For Instructor Use Only
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,SOLUTION MANUAL FOR w w




AuditingAPracticalApproachwithDataAnalytics,2nd EditionRaymondN.Johnson, Laura Davis w
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Wiley, Robyn Moroney, Fiona Campbell,Jane Hamilton
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Chapter 1- w




16 CHAPTER 1 w




Introduction and Overview of Audit and Assurance w w w w w w




Learning Objectives w




1. Differentiate among assurance, attestation, and auditing services.
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2. Describe the different types of assurance services.
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3. Explain the demand for audit and assurance services.
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4. Discuss the different roles of the financial statement preparer and the auditor.
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5. Identify the roles of different regulators and organizations that affect the audit profession.
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6. Explain the concepts of reasonable assurance, materiality, and the nature of an unquali-
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w fied/unmodified report on the audit of financial statements.
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7. Explain the concept of reasonable assurance and the nature of an unqualified report on
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w internal controls over financial reporting.
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8. Discuss the audit expectation gap.
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ANSWERS TO MULTIPLE-CHOICE QUESTIONS w w w




1. C

LOw1, wBT: wC, wDifficulty: wEasy, wTOT: w2wmin., wAACSB: wNone, wAICPA wAC: wRiskHAssessment, wAnalysisHand wManagement, wSecti won:
w Assurance, wAttestation, wand wAudit wServices



2. A

LOw2, wBT: wC, wDifficulty: wEasy, wTOT: w2wmin., wAACSB: wNone, wAICPA wAC: wRiskHAssessment, wAnalysisHand wManagement, wSecti won:
w Different wAssurance wServices

For Instructor Use Only
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,3. B

LOw2,wBT:wC, wDifficulty: wEasy, wTOT: w2wmin., wAACSB: wNone, wAICPAHAC: wRiskHAssessment, wAnalysisHand wManagement, wSecti won:
w Different wAssurance wServices



4. C

LO w2, wBT: wC, wDifficulty: wMedium, wTOT: w2 wmin., wAACSB: wNone, wAICPAHAC: wRiskHAssessment, wAnalysis wand wManagement, wS
w ection: wDifferentHAssurance wServices



5. C

LO w3, wBT: wC, wDifficulty: wMedium, wTOT: w2 wmin., wAACSB: wNone, wAICPAHAC: wRiskHAssessment, wAnalysis wand wManagement, wS
w ection: wDemand wfor wAudit wand wAssurance wServices




For Instructor Use Only
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, 6. B

LOw4, wBT: wC, wDifficulty: wEasy, wTOT: w2wmin., wAACSB: wNone, wAICPA wAC: wRiskHAssessment, wAnalysisHand wManagement, wSecti won:
w Preparers wand wAuditors



7. A

LO w5, wBT: wC, wDifficulty: wEasy, wTOT: w2 wmin., wAACSB: wNone, wAICPAHAC: wReporting, wSection: wThe wRole wof wRegulators wand wR
w egulations



8. D

LO w5, wBT: wC, wDifficulty: wEasy, wTOT: w2 wmin., wAACSB: wNone, wAICPAHBC: wGovernance wPerspective, wSection: wThe wRole wof wRe
w gulators wand wRegulations



9. D

LOw6, wBT: wC, wDifficulty: wEasy, wTOT: w2 wmin., wAACSB: wNone, wAICPA wAC: wRiskHAssessment, wAnalysis wand wManagement, wSecti won:
w AuditHReportHon wFinancial wStatements



10. C

LOw6,wBT: wC, wDifficulty: wEasy, wTOT: w2wmin., wAACSB: wNone, wAICPA wAC: wReporting, wSection: wAuditwReportHon wthe wFinancial
w Statements



11. B

LO w7, wBT: wC, wDifficulty: wEasy, wTOT: w2 wmin., wAACSB: wNone, wAICPAHAC: wReporting, wSection: wAuditHReportHon wInternal wCont
w rolsHover wFinancial wReporting



12. B
LO w8, wBT: wC, wDifficulty: wMedium, wTOT: w2 wmin., wAACSB: wNone, wAICPA wPC: wProfessional wBehavior, wSection: wThe wAudit
w Expectation wGap

ANSWERS TO REVIEW QUESTIONS w w w




R1.1 An assurance service is any service provided by an independent practitioner that im- proves
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the quality of information, or its context, for decision makers. An independent practitioner can
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w verify that the information meets relevant criteria, which provides assurance to users who in tend
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w to use the information for decision making. An assurance engagement has three parties: th e
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For Instructor Use Only
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