TEST BANK
Auditing: A Risk Based-Approach to Conducting a Quality Audit
Karla Johnstone-Zehms
JN 10th Edition
U
R
SE
Cengage Learning Testing, Powered by Cognero Page 1
, Table of Contents
1. Auditing and Assurance Services
2. Corporate Governance, Audit Standards, and Quality
3. Engagement Planning, Audit Evidence, and Documentation
4. Professional Ethics and Legal Liability of Auditors
5. Audit Risk, Business Risk, and the Audit Planning Process
6. Internal Control Evaluation, Design, and Testing
7. Audit Sampling and Data Analytics in the Audit Process
8. Auditing Internal Controls over Financial Reporting
9. Auditing Revenue and Accounts Receivable
10. Auditing Purchases, Payables, and Payments
JN
11. Auditing Inventory and Cost of Goods Sold
12. Auditing Cash and Investments
13. Auditing Property, Plant, Equipment, and Intangibles
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14. Completing the Audit
15. Reports on Audited Financial Statements
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16. Other Assurance and Nonassurance Services
SE
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,Chapter 1 - Auditing: Integral to the Economy
1. The need for assurance services arises because the interests of the users of information may be different from
that of the interests of those responsible for providing information.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Demand for Assurances
2. A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.
a. True
b. False
ANSWER: True
POINTS: 1
JN
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
U
3. Auditors should conduct their work with an attitude of professional skepticism.
a. True
b. False
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ANSWER: True
POINTS: 1
SE
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
4. A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to
Milton is a good example of the need for unbiased reporting.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
5. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True
b. False
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, ANSWER: True
JN
U
R
SE
Cengage Learning Testing, Powered by Cognero Page 4
Auditing: A Risk Based-Approach to Conducting a Quality Audit
Karla Johnstone-Zehms
JN 10th Edition
U
R
SE
Cengage Learning Testing, Powered by Cognero Page 1
, Table of Contents
1. Auditing and Assurance Services
2. Corporate Governance, Audit Standards, and Quality
3. Engagement Planning, Audit Evidence, and Documentation
4. Professional Ethics and Legal Liability of Auditors
5. Audit Risk, Business Risk, and the Audit Planning Process
6. Internal Control Evaluation, Design, and Testing
7. Audit Sampling and Data Analytics in the Audit Process
8. Auditing Internal Controls over Financial Reporting
9. Auditing Revenue and Accounts Receivable
10. Auditing Purchases, Payables, and Payments
JN
11. Auditing Inventory and Cost of Goods Sold
12. Auditing Cash and Investments
13. Auditing Property, Plant, Equipment, and Intangibles
U
14. Completing the Audit
15. Reports on Audited Financial Statements
R
16. Other Assurance and Nonassurance Services
SE
Cengage Learning Testing, Powered by Cognero Page 2
,Chapter 1 - Auditing: Integral to the Economy
1. The need for assurance services arises because the interests of the users of information may be different from
that of the interests of those responsible for providing information.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Demand for Assurances
2. A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.
a. True
b. False
ANSWER: True
POINTS: 1
JN
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
U
3. Auditors should conduct their work with an attitude of professional skepticism.
a. True
b. False
R
ANSWER: True
POINTS: 1
SE
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
4. A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to
Milton is a good example of the need for unbiased reporting.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
5. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True
b. False
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, ANSWER: True
JN
U
R
SE
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