ACG3141

TEST BANK FOR AUDITING: A RISK BASED-APPROACH, 11TH EDITION, KARLA M. JOHNSTONE, AUDREY A. GRAMLING, LARRY E. RITTENBERG Chapter 1. Quality Auditing: Why It Matters. 1. The need for independent assurance arises because the interests of the users of information may be different from the interests of those responsible for providing information. a. True b. False ANSWER: True POINTS: 1 QUESTION TYPE: ...

Chapter 2. The Auditor’s Responsibilities Regarding Fraud and Mechanisms to Address Fraud, Regulation and Corporate Governance

Chapter 3. Internal Control over Financial Reporting, Responsibilities of Management and the External Auditor

Chapter 4. Professional Legal Liability/ Chapter 4. Professional Legal Liability. 1. Under Common Law, liability concepts are developed through court decisions based on negligence, gross negligence, or fraud. True False 2. Public confidence is mostly maintained by the public accounting profession through integrity based on personal moral standards and it is reinforced by codes of conduct. True False 3. An individual does not need to agree to uphold the ...

Chapter 5. Professional Auditing Standards and the Audit Opinion Formulation Process

Chapter 6. Audit Evidence

Chapter 7. Planning the Audit, Identifying and Responding to the Risks of Material Misstatement

Chapter 8. Specialized Audit Tools, Sampling and Generalized Audit Software/ Chapter 8. Specialized Audit Tools: Sampling and Generalized Audit Software 1. Audit sampling implies the gathering of evidence to use as a basis for making valid inferences about the characteristics of the population as a whole without examining every transaction. True False 2. Audit sampling is the application of an audit procedure to less than 100 percent of the items within an ac...

Chapter 9. Auditing the Revenue Cycle/ Chapter 9: Auditing the Revenue Cycle 1. The revenue cycle considered by auditors includes the sales process but not collections. True False 2. The revenue cycle involves the procedures in generating a sales order, shipping the products, recording the transaction and collecting the receivable. True False 3. The shipping department confirms the shipment of goods by completing the packing slip and returning it to ...