TESTBANK FOR AUDITING A PRACTICAL APPROACH,
8% 8% 8% 8% 8% 8%
4TH CANADIAN EDITION 4TH EDITION, KINDLE EDITION
8% 8% 8% 8% 8% 8% 8%
BY ROBYN MORONEY , FIONA CAMPBELL , JANE HAMI
8% 8% 8% 8% 8% 8% 8% 8%
LTON , VALERIE WARREN
8% 8% 8%
, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
CHAPTER 1 8 %
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANC 8% 8% 8% 8% 8% 8%
E
CHAPTER LEARNING OBJECTIVES 8% 8%
1. Define an assurance engagement. 8% 8% 8%
An assurance engagement involves an assurance provider arriving atan opinion about so
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
me information being provided by their client toa third party. A financial statement audit i
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s one type of assuranceengagement. This engagement involves an auditor arriving at an
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
8% opinionabout the fair presentation of the financial statements. The auditreport is addres
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
sed to the shareholders of the company being audited,but other users may read the fina
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ncial statements. Learning aboutauditing and assurance requires an understanding of au
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
diting andassurance terminology, including terms such as audit risk, materiality,internal c
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ontrols, listed entity, and assertions.
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2. Explain why there is a demand for audit and assurance services.
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Financial statement users include investors (shareholders), suppliers,customers, lenders,
8% 8% 8% 8% 8% 8% 8% 8
% employees, governments, and the general public.These groups of users demand audite
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
d financial statements because oftheir remoteness from the entity, accounting complexity
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
, theirincentivescompeting with those of the entity‘s managers, and their needfor reliable
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
information on which to base decisions. The theories usedto describe the demand for aud
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
it and assurance services are agencytheory, the information hypothesis, and the insuran
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ce hypothesis.
8%
3. Differentiate between types of assurance services. 8% 8% 8% 8% 8%
Assurance services include financial statement audits, complianceaudits, performance audi
8% 8% 8% 8% 8% 8% 8% 8%
ts, comprehensive audits, internal audits,and assurance on corporate social responsibility
8% 8% 8% 8% 8% 8% 8% 8% 8%
8% (CSR) disclosures. 8%
4. Explain the different levels of assurance.
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The different levels of assurance include reasonable assurance, whichis the highest level
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
of assurance, limited assurance, and no assurance.Reasonable assurance is provided o
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
n an audit of a company‘sfinancial statements. Limited assurance is provided in a revie
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
acompany‘s financial Dsotwante
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, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
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w of
8%
acompany‘s financial Dsotwante
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ationengagem
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5. Outline different audit opinions
8% 8% 8%
An auditor can issue an unmodified opinion, also known as a cleanreport, or an unmodifi
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ed opinion with an emphasis of matter paragraph.Alternatively, a modified opinion may b
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
e issued as a qualified, anadverse, or a disclaimer of opinion.
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
6. Differentiate between the roles of the preparer and the auditor, and discuss t
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
he different firms that provide assurance services.
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It is the responsibility of a company‘s governing body to ensure thatits financial stateme
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
nts are relevant, reliable, comparable, understandable,and true and fair. It is the responsib
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ility of the auditor to form anopinion on the fair presentation of the financial statements. I
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
n doing,so 1- 2 Auditing: A Practical Approach, Fourth Canadian Edition
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
the auditor must maintain professional scepticism and utilize professionaljudgement and d
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ue care.8%
The firms that provide assurance services include the Big-
8% 8% 8% 8% 8% 8% 8% 8%
4international firms, the national firms (with international links),local and regional firms, a
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
nd consulting firms that tend to specializein assurance of CSR and environmental disclo
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
sures.
7. Identify the different regulators, legislation, and regulations surrounding th
8% 8% 8% 8% 8% 8% 8% 8%
e assurance process.
8% 8%
lOM 8% 8% 8% 8% 8% 8%8% 8% 8%
oA R c P S D | 30 8 78 49 5
Introduction and Overview of Audit and Assurance 8% 8% 8% 8% 8% 8% 1- 3
8% 8%
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8% 8% 8% 8% 8% 8%
4TH CANADIAN EDITION 4TH EDITION, KINDLE EDITION
8% 8% 8% 8% 8% 8% 8%
BY ROBYN MORONEY , FIONA CAMPBELL , JANE HAMI
8% 8% 8% 8% 8% 8% 8% 8%
LTON , VALERIE WARREN
8% 8% 8%
, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
CHAPTER 1 8 %
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANC 8% 8% 8% 8% 8% 8%
E
CHAPTER LEARNING OBJECTIVES 8% 8%
1. Define an assurance engagement. 8% 8% 8%
An assurance engagement involves an assurance provider arriving atan opinion about so
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
me information being provided by their client toa third party. A financial statement audit i
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
s one type of assuranceengagement. This engagement involves an auditor arriving at an
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
8% opinionabout the fair presentation of the financial statements. The auditreport is addres
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
sed to the shareholders of the company being audited,but other users may read the fina
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ncial statements. Learning aboutauditing and assurance requires an understanding of au
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
diting andassurance terminology, including terms such as audit risk, materiality,internal c
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ontrols, listed entity, and assertions.
8% 8% 8% 8%
2. Explain why there is a demand for audit and assurance services.
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
Financial statement users include investors (shareholders), suppliers,customers, lenders,
8% 8% 8% 8% 8% 8% 8% 8
% employees, governments, and the general public.These groups of users demand audite
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
d financial statements because oftheir remoteness from the entity, accounting complexity
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
, theirincentivescompeting with those of the entity‘s managers, and their needfor reliable
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
information on which to base decisions. The theories usedto describe the demand for aud
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
it and assurance services are agencytheory, the information hypothesis, and the insuran
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ce hypothesis.
8%
3. Differentiate between types of assurance services. 8% 8% 8% 8% 8%
Assurance services include financial statement audits, complianceaudits, performance audi
8% 8% 8% 8% 8% 8% 8% 8%
ts, comprehensive audits, internal audits,and assurance on corporate social responsibility
8% 8% 8% 8% 8% 8% 8% 8% 8%
8% (CSR) disclosures. 8%
4. Explain the different levels of assurance.
8% 8% 8% 8% 8%
The different levels of assurance include reasonable assurance, whichis the highest level
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
of assurance, limited assurance, and no assurance.Reasonable assurance is provided o
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
n an audit of a company‘sfinancial statements. Limited assurance is provided in a revie
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
acompany‘s financial Dsotwante
l om ednbtsy:.BNRo
ade aTsEsRuSrTaUnDcIeESis| jp
I GH amroohvriadbehd in70a@cgm
asa omail.p
coilm
ationengagem
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, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
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https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
w of
8%
acompany‘s financial Dsotwante
l om ednbtsy:.BNRo
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I GH amroohvriadbehd in70a@cgm
asa omail.p
coilm
ationengagem
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, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
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5. Outline different audit opinions
8% 8% 8%
An auditor can issue an unmodified opinion, also known as a cleanreport, or an unmodifi
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ed opinion with an emphasis of matter paragraph.Alternatively, a modified opinion may b
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
e issued as a qualified, anadverse, or a disclaimer of opinion.
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
6. Differentiate between the roles of the preparer and the auditor, and discuss t
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
he different firms that provide assurance services.
8% 8% 8% 8% 8% 8%
It is the responsibility of a company‘s governing body to ensure thatits financial stateme
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
nts are relevant, reliable, comparable, understandable,and true and fair. It is the responsib
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ility of the auditor to form anopinion on the fair presentation of the financial statements. I
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
n doing,so 1- 2 Auditing: A Practical Approach, Fourth Canadian Edition
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
the auditor must maintain professional scepticism and utilize professionaljudgement and d
8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
ue care.8%
The firms that provide assurance services include the Big-
8% 8% 8% 8% 8% 8% 8% 8%
4international firms, the national firms (with international links),local and regional firms, a
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
nd consulting firms that tend to specializein assurance of CSR and environmental disclo
8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8%
sures.
7. Identify the different regulators, legislation, and regulations surrounding th
8% 8% 8% 8% 8% 8% 8% 8%
e assurance process.
8% 8%
lOM 8% 8% 8% 8% 8% 8%8% 8% 8%
oA R c P S D | 30 8 78 49 5
Introduction and Overview of Audit and Assurance 8% 8% 8% 8% 8% 8% 1- 3
8% 8%
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