Auditing & Assurance Services: A Systematic Approach 11th Edition with complet solutions

Auditing & Assurance Services: A Systematic Approach, 11e (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. Answer: 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 St 2) Decision makers demand reliable information that is provided by accountants. Answer: TRUE Difficulty: 1 Easy ud 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 yN AACSB: Communication AICPA: FN Decision Making; BB Industry 3) Information asymmetry seldom occurs. Answer: FALSE es 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. t Bloom's: Apply AACSB: Communication AICPA: BB Industry; FN Reporting , Test bank Auditing & Assurance Services: A Systematic Approach, 11e 4) Conflicts of interest often occur between absentee owners and managers. Answer: 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. Answer: FALSE St Difficulty: 1 Easy Topic: Auditing, Attest, and Assurance Services Defined Learning Objective: 01-03 Understand the relationships among auditing, attestation, and assurance services. ud Bloom's: Understand AACSB: Communication AICPA: BB Industry; FN Reporting 6) Auditing is a type of attest service. yN Answer: 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. es Bloom's: Understand AACSB: Communication AICPA: BB Industry; FN Reporting 7) Testing all transactions that occurred during the period is cost prohibitive. t Answer: 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 th