Test Bank for
Auditing & Assurance Services A Systematic Approach 12e Messier
Chapter 1-21 Answers are at the End of Each
Chapter
Chapter 1
Student name:
1) Why do auditors often use a sampling approach to evidence
gathering? 1)
A) Auditors are experts and do not need to look at much to know whether
the financial statements are correct or not.
B) Auditors must balance the cost of the audit with the need for precision and for
some types of evidence, computer data analytic approaches can’t be used.
C) Auditors must limit their exposure to their auditee to maintain independence.
D) The auditor's relationship with the auditee is generally adversarial, so the
auditor will not have access to all of the financial information of the company.
Question Details
AACSB : Communication
AICPA : FN Decision Making
Accessibility : Keyboard Navigation
Difficulty : 1 Easy
AICPA : BB Industry
Bloom's : Understand
Learning Objective : 01-05 Understand why sampling is important in an
audit. Gradable : automatic
Accessibility : Screen Reader
Compatible Topic : The Audit
Process
2) Which of the following statements best describes a relationship between
sample size and other elements of auditing?
2)
, A) If materiality increases, so will the sample size.
B) If the desired level of assurance increases, sample sizes can be smaller.
C) If materiality decreases, sample size will need to increase.
D) There is no relationship between sample size and materiality or the
desired level of assurance.
Question Details
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
AICPA : BB Critical
Thinking AACSB :
Analytical Thinking
AICPA : FN Risk Analysis
Learning Objective : 01-05 Understand why sampling is important in an
audit. Gradable : automatic
Accessibility : Screen Reader
Compatible Topic : The Audit
Process
3) Which of the following statements about the study of auditing is
NOT true? 3)
A) The study of auditing can be valuable to future accountants and business
decision makers whether or not they plan to become auditors.
B) The study of auditing focuses on learning the analytical and logical skills
necessary to evaluate the relevance and reliability of information.
C) The study of auditing focuses on learning the rules, techniques, and
computations required to analyze financial statements for making investment
recommendations.
D) The study of auditing begins with the understanding of a coherent logical
framework and techniques useful for gathering and analyzing evidence about
others’ assertions.
,Question Details
AACSB : Communication
AICPA : FN Decision
Making
Accessibility : Keyboard Navigation
Learning Objective : 01-01 Understand why studying auditing can be valuable to you
whether or not you AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Analyze
Gradable : automatic
Accessibility : Screen Reader Compatible
Topic : The Importance for Studying
Auditing
4) The basic definition of auditing essentially indicates that, overall, auditing is a
process to:
4)
A) detect fraud.
B) examine individual transactions so that the auditor may certify as to their
validity.
C) objectively obtain and evaluate evidence regarding assertions made by
another party.
D) assure the consistent application of correct accounting procedures.
Question Details
AACSB : Communication
Accessibility : Keyboard
Navigation Bloom's :
Remember
Difficulty : 1 Easy
AICPA : FN
Reporting
Learning Objective : 01-03 Know the basic definition of a financial
statement audit. AICPA : BB Critical Thinking
Gradable : automatic
Accessibility : Screen Reader Compatible
Topic : Auditing, Attest, and Assurance Services Defined
5) Assurance services may improve all of the following exc
, ept:
5)
Auditing & Assurance Services A Systematic Approach 12e Messier
Chapter 1-21 Answers are at the End of Each
Chapter
Chapter 1
Student name:
1) Why do auditors often use a sampling approach to evidence
gathering? 1)
A) Auditors are experts and do not need to look at much to know whether
the financial statements are correct or not.
B) Auditors must balance the cost of the audit with the need for precision and for
some types of evidence, computer data analytic approaches can’t be used.
C) Auditors must limit their exposure to their auditee to maintain independence.
D) The auditor's relationship with the auditee is generally adversarial, so the
auditor will not have access to all of the financial information of the company.
Question Details
AACSB : Communication
AICPA : FN Decision Making
Accessibility : Keyboard Navigation
Difficulty : 1 Easy
AICPA : BB Industry
Bloom's : Understand
Learning Objective : 01-05 Understand why sampling is important in an
audit. Gradable : automatic
Accessibility : Screen Reader
Compatible Topic : The Audit
Process
2) Which of the following statements best describes a relationship between
sample size and other elements of auditing?
2)
, A) If materiality increases, so will the sample size.
B) If the desired level of assurance increases, sample sizes can be smaller.
C) If materiality decreases, sample size will need to increase.
D) There is no relationship between sample size and materiality or the
desired level of assurance.
Question Details
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
AICPA : BB Critical
Thinking AACSB :
Analytical Thinking
AICPA : FN Risk Analysis
Learning Objective : 01-05 Understand why sampling is important in an
audit. Gradable : automatic
Accessibility : Screen Reader
Compatible Topic : The Audit
Process
3) Which of the following statements about the study of auditing is
NOT true? 3)
A) The study of auditing can be valuable to future accountants and business
decision makers whether or not they plan to become auditors.
B) The study of auditing focuses on learning the analytical and logical skills
necessary to evaluate the relevance and reliability of information.
C) The study of auditing focuses on learning the rules, techniques, and
computations required to analyze financial statements for making investment
recommendations.
D) The study of auditing begins with the understanding of a coherent logical
framework and techniques useful for gathering and analyzing evidence about
others’ assertions.
,Question Details
AACSB : Communication
AICPA : FN Decision
Making
Accessibility : Keyboard Navigation
Learning Objective : 01-01 Understand why studying auditing can be valuable to you
whether or not you AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Analyze
Gradable : automatic
Accessibility : Screen Reader Compatible
Topic : The Importance for Studying
Auditing
4) The basic definition of auditing essentially indicates that, overall, auditing is a
process to:
4)
A) detect fraud.
B) examine individual transactions so that the auditor may certify as to their
validity.
C) objectively obtain and evaluate evidence regarding assertions made by
another party.
D) assure the consistent application of correct accounting procedures.
Question Details
AACSB : Communication
Accessibility : Keyboard
Navigation Bloom's :
Remember
Difficulty : 1 Easy
AICPA : FN
Reporting
Learning Objective : 01-03 Know the basic definition of a financial
statement audit. AICPA : BB Critical Thinking
Gradable : automatic
Accessibility : Screen Reader Compatible
Topic : Auditing, Attest, and Assurance Services Defined
5) Assurance services may improve all of the following exc
, ept:
5)
