TEST BANK FOR AUDITING &
ASSURANCE SERVICES: A
SYSTEMATIC APPROACH, 12TH
EDITION CHAPTERS 1 - 21 COMPLETE
LATEST EDITION 2026
,TABLE OF CONTENTS
1. Chapter 1: An Introduction To Assurance And Financial Statement Auditing
2. Chapter 2: The Financial Statement Auditing Environment
3. Chapter 3: Audit Planning, Types Of Audit Tests, And Materiality
4. Chapter 4: Risk Assessment
5. Chapter 5: Evidence And Documentation
6. Chapter 6: Internal Control In A Financial Statement Audit
7. Chapter 7: Auditing Internal Control Over Financial Reporting
8. Chapter 8: Audit Sampling: An Overview And Application To Tests Of Controls
9. Chapter 9: Audit Sampling: An Application To Substantive Tests Of Account
Balances
10. Chapter 10: Auditing The Revenue Process
11. Chapter 11: Auditing The Purchasing Process
12. Chapter 12: Auditing The Human Resource Management Process
13. Chapter 13: Auditing The Inventory Management Process
14. Chapter 14: Auditing The Financing/Investing Process: Prepaid Expenses,
Intangible Assets, And Property, Plant, And Equipment
15. Chapter 15: Auditing The Financing/Investing Process: Long-Term Liabilities,
Stockholders’
16. Equity, And Income Statement Accounts
17. Chapter 16: Auditing The Financing/Investing Process: Cash And Investments
18. Chapter 17: Completing The Audit Engagement
19. Chapter 18: Reports On Audited Financial Statements
20. Chapter 19: Professional Conduct, Independence, And Quality Management
21. Chapter 20: Legal Liability
22. Chapter 21: Assurance, Attestation, And Internal Auditing Services
,Auditing & Assurance Services: A Systematic Approach, 12e (Messier)
Chapter 1 An Introduction To Assurance And Financial Statement Auditing
1) Auditing Focuses On Rules, Techniques, And Computations Required To Prepare And
Analyze Financial Information.
ANS: FALSE
Difficulty: 1 Easy
Topic: The Importance For Studying Auditing
Learning Objective: 01-01 Understand Why Studying Auditing Can Be Valuable To You Whether Or
Not You Plan To Become An Auditor, And Why It Is Different From Studying Accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Legal; FN Decision Making
2) Decision Makers Demand Reliable Information That Is Provided By Accountants.
ANS: TRUE
Difficulty: 1 Easy
Topic: The Demand For Auditing And Assurance
Learning Objective: 01-02 Understand The Demand For Auditing And Be Able To Explain The Desired
Characteristics Of Auditors And Audit Services Through An Analogy To A House Inspector And A
House Inspection Service.
Bloom's: Understand
AACSB: Communication
AICPA: FN Decision Making; BB Industry
3) Information Asymmetry Seldom Occurs.
ANS: FALSE
Difficulty: 2 Medium
Topic: The Demand For Auditing And Assurance
Learning Objective: 01-02 Understand The Demand For Auditing And Be Able To Explain The Desired
Characteristics Of Auditors And Audit Services Through An Analogy To A House Inspector And A
House Inspection Service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
, 4) Conflicts Of Interest Often Occur Between Absentee Owners And Managers.
ANS: TRUE
Difficulty: 2 Medium
Topic: The Demand For Auditing And Assurance
Learning Objective: 01-02 Understand The Demand For Auditing And Be Able To Explain The Desired
Characteristics Of Auditors And Audit Services Through An Analogy To A House Inspector And A
House Inspection Service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
5) Auditing Services And Attestation Services Are The Same.
ANS: FALSE
Difficulty: 1 Easy
Topic: Auditing, Attest, And Assurance Services Defined
Learning Objective: 01-03 Understand The Relationships Among Auditing, Attestation, And
Assurance Services.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
6) Auditing Is A Type Of Attest Service.
ANS: TRUE
Difficulty: 1 Easy
Topic: Auditing, Attest, And Assurance Services Defined
Learning Objective: 01-03 Understand The Relationships Among Auditing, Attestation, And
Assurance Services.; 01-04 Know The Basic Definition Of A Financial Statement Audit.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
7) Testing All Transactions That Occurred During The Period Is Cost Prohibitive.
ANS: TRUE
Difficulty: 2 Medium Topic:
The Audit Process
Learning Objective: 01-06 Be Able To Explain Why On Most Audit Engagements An Auditor Tests Only
A Sample Of Transactions That Occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FN Decision Making; BB Critical Thinking
ASSURANCE SERVICES: A
SYSTEMATIC APPROACH, 12TH
EDITION CHAPTERS 1 - 21 COMPLETE
LATEST EDITION 2026
,TABLE OF CONTENTS
1. Chapter 1: An Introduction To Assurance And Financial Statement Auditing
2. Chapter 2: The Financial Statement Auditing Environment
3. Chapter 3: Audit Planning, Types Of Audit Tests, And Materiality
4. Chapter 4: Risk Assessment
5. Chapter 5: Evidence And Documentation
6. Chapter 6: Internal Control In A Financial Statement Audit
7. Chapter 7: Auditing Internal Control Over Financial Reporting
8. Chapter 8: Audit Sampling: An Overview And Application To Tests Of Controls
9. Chapter 9: Audit Sampling: An Application To Substantive Tests Of Account
Balances
10. Chapter 10: Auditing The Revenue Process
11. Chapter 11: Auditing The Purchasing Process
12. Chapter 12: Auditing The Human Resource Management Process
13. Chapter 13: Auditing The Inventory Management Process
14. Chapter 14: Auditing The Financing/Investing Process: Prepaid Expenses,
Intangible Assets, And Property, Plant, And Equipment
15. Chapter 15: Auditing The Financing/Investing Process: Long-Term Liabilities,
Stockholders’
16. Equity, And Income Statement Accounts
17. Chapter 16: Auditing The Financing/Investing Process: Cash And Investments
18. Chapter 17: Completing The Audit Engagement
19. Chapter 18: Reports On Audited Financial Statements
20. Chapter 19: Professional Conduct, Independence, And Quality Management
21. Chapter 20: Legal Liability
22. Chapter 21: Assurance, Attestation, And Internal Auditing Services
,Auditing & Assurance Services: A Systematic Approach, 12e (Messier)
Chapter 1 An Introduction To Assurance And Financial Statement Auditing
1) Auditing Focuses On Rules, Techniques, And Computations Required To Prepare And
Analyze Financial Information.
ANS: FALSE
Difficulty: 1 Easy
Topic: The Importance For Studying Auditing
Learning Objective: 01-01 Understand Why Studying Auditing Can Be Valuable To You Whether Or
Not You Plan To Become An Auditor, And Why It Is Different From Studying Accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Legal; FN Decision Making
2) Decision Makers Demand Reliable Information That Is Provided By Accountants.
ANS: TRUE
Difficulty: 1 Easy
Topic: The Demand For Auditing And Assurance
Learning Objective: 01-02 Understand The Demand For Auditing And Be Able To Explain The Desired
Characteristics Of Auditors And Audit Services Through An Analogy To A House Inspector And A
House Inspection Service.
Bloom's: Understand
AACSB: Communication
AICPA: FN Decision Making; BB Industry
3) Information Asymmetry Seldom Occurs.
ANS: FALSE
Difficulty: 2 Medium
Topic: The Demand For Auditing And Assurance
Learning Objective: 01-02 Understand The Demand For Auditing And Be Able To Explain The Desired
Characteristics Of Auditors And Audit Services Through An Analogy To A House Inspector And A
House Inspection Service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
, 4) Conflicts Of Interest Often Occur Between Absentee Owners And Managers.
ANS: TRUE
Difficulty: 2 Medium
Topic: The Demand For Auditing And Assurance
Learning Objective: 01-02 Understand The Demand For Auditing And Be Able To Explain The Desired
Characteristics Of Auditors And Audit Services Through An Analogy To A House Inspector And A
House Inspection Service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
5) Auditing Services And Attestation Services Are The Same.
ANS: FALSE
Difficulty: 1 Easy
Topic: Auditing, Attest, And Assurance Services Defined
Learning Objective: 01-03 Understand The Relationships Among Auditing, Attestation, And
Assurance Services.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
6) Auditing Is A Type Of Attest Service.
ANS: TRUE
Difficulty: 1 Easy
Topic: Auditing, Attest, And Assurance Services Defined
Learning Objective: 01-03 Understand The Relationships Among Auditing, Attestation, And
Assurance Services.; 01-04 Know The Basic Definition Of A Financial Statement Audit.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
7) Testing All Transactions That Occurred During The Period Is Cost Prohibitive.
ANS: TRUE
Difficulty: 2 Medium Topic:
The Audit Process
Learning Objective: 01-06 Be Able To Explain Why On Most Audit Engagements An Auditor Tests Only
A Sample Of Transactions That Occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FN Decision Making; BB Critical Thinking
