TEST BANK For Auditing & Assurance Services: A Syst
b b b b b b b b
ematic Approach, 12th Edition
b b b b
Chapters 1 - 21 Complete
b b b b
,
,Chapterb1:bAnbIntroductionbtobAssurancebandbFinancialbStatementbAuditing
Chapterb2:bThebFinancialbStatementbAuditingbEnvironment
Chapterb3:bAuditbPlanning,bTypesbofbAuditbTests,bandbMateriality
Chapterb4:bRiskbAssessment
Chapterb5:bEvidencebandbDocumentation
Chapterb6:bInternalbControlbinbabFinancialbStatementbAudit
Chapterb7:bAuditingbInternalbControlboverbFinancialbReporting
Chapterb8:bAuditbSampling:bAnbOverviewbandbApplicationbtobTestsbofbControls
Chapterb9:bAuditbSampling:bAnbApplicationbtobSubstantivebTestsbofbAccountbBalances
Chapterb10:bAuditingbthebRevenuebProcess
Chapterb11:bAuditingbthebPurchasingbProcess
Chapterb12:bAuditingbthebHumanbResourcebManagementbProcess
Chapterb13:bAuditingbthebInventorybManagementbProcess
Chapterb14:bAuditingbthebFinancing/InvestingbProcess:bPrepaidbExpenses,bIntangiblebAssets,bandbPro
perty,bPlant,bandbEquipment
Chapterb15:bAuditingbthebFinancing/InvestingbProcess:bLong-
TermbLiabilities,bStockholders’bEquity,bandbIncomebStatementbAccounts
Chapterb16:bAuditingbthebFinancing/InvestingbProcess:bCashbandbInvestments
Chapterb17:bCompletingbthebAuditbEngagement
Chapterb18:bReportsbonbAuditedbFinancialbStatements
Chapterb19:bProfessionalbConduct,bIndependence,bandbQualitybManagement
Chapterb20:bLegalbLiability
Chapterb21:bAssurance,bAttestation,bandbInternalbAuditingbServices
, Auditingb&bAssurancebServices:bAbSystematicbApproach,b12eb(Messier)bChapterb
1b AnbIntroductionbtobAssurancebandbFinancialbStatementbAuditing
1) Auditingbfocusesbonbrules,btechniques,bandbcomputationsbrequiredbtobpreparebandbanaly
zebfinancialbinformation.
ANSWER:b FALSEbDifficulty
:b1bEasy
Topic:b ThebImportancebforbStudyingbAuditing
LearningbObjective:b 01-
01bUnderstandbwhybstudyingbauditingbcanbbebvaluablebtobyoubwhetherborbnotbyoubplanbtobbecom
ebanbauditor,bandbwhybitbisbdifferentbfrombstudyingbaccounting.
Bloom's:b RememberbAAC
SB:b Communication
AICPA:b BBbLegal;bFNbDecisionbMaking
2) Decisionbmakersbdemandbreliablebinformationbthatbisbprovidedbbybaccountants.
ANSWER:b TRUEbDifficulty
:b1bEasy
Topic:b ThebDemandbforbAuditingbandbAssurance
LearningbObjective:b 01-
02bUnderstandbthebdemandbforbauditingbandbbebablebtobexplainbthebdesiredbcharacteristicsbofbau
ditorsbandbauditbservicesbthroughbanbanalogybtobabhousebinspectorbandbabhousebinspectionbservic
e.
Bloom's:b UnderstandbAA
CSB:b Communication
AICPA:b FNbDecisionbMaking;bBBbIndustry
3) Informationbasymmetrybseldomboccurs.
ANSWER:b FALSEbDifficulty
:b2bMedium
Topic:b ThebDemandbforbAuditingbandbAssurance
LearningbObjective:b 01-
02bUnderstandbthebdemandbforbauditingbandbbebablebtobexplainbthebdesiredbcharacteristicsbofbau
ditorsbandbauditbservicesbthroughbanbanalogybtobabhousebinspectorbandbabhousebinspectionbservic
e.
Bloom's:b Apply
AACSB:b Communication
AICPA:b BBbIndustry;bFNbReporting
b b b b b b b b
ematic Approach, 12th Edition
b b b b
Chapters 1 - 21 Complete
b b b b
,
,Chapterb1:bAnbIntroductionbtobAssurancebandbFinancialbStatementbAuditing
Chapterb2:bThebFinancialbStatementbAuditingbEnvironment
Chapterb3:bAuditbPlanning,bTypesbofbAuditbTests,bandbMateriality
Chapterb4:bRiskbAssessment
Chapterb5:bEvidencebandbDocumentation
Chapterb6:bInternalbControlbinbabFinancialbStatementbAudit
Chapterb7:bAuditingbInternalbControlboverbFinancialbReporting
Chapterb8:bAuditbSampling:bAnbOverviewbandbApplicationbtobTestsbofbControls
Chapterb9:bAuditbSampling:bAnbApplicationbtobSubstantivebTestsbofbAccountbBalances
Chapterb10:bAuditingbthebRevenuebProcess
Chapterb11:bAuditingbthebPurchasingbProcess
Chapterb12:bAuditingbthebHumanbResourcebManagementbProcess
Chapterb13:bAuditingbthebInventorybManagementbProcess
Chapterb14:bAuditingbthebFinancing/InvestingbProcess:bPrepaidbExpenses,bIntangiblebAssets,bandbPro
perty,bPlant,bandbEquipment
Chapterb15:bAuditingbthebFinancing/InvestingbProcess:bLong-
TermbLiabilities,bStockholders’bEquity,bandbIncomebStatementbAccounts
Chapterb16:bAuditingbthebFinancing/InvestingbProcess:bCashbandbInvestments
Chapterb17:bCompletingbthebAuditbEngagement
Chapterb18:bReportsbonbAuditedbFinancialbStatements
Chapterb19:bProfessionalbConduct,bIndependence,bandbQualitybManagement
Chapterb20:bLegalbLiability
Chapterb21:bAssurance,bAttestation,bandbInternalbAuditingbServices
, Auditingb&bAssurancebServices:bAbSystematicbApproach,b12eb(Messier)bChapterb
1b AnbIntroductionbtobAssurancebandbFinancialbStatementbAuditing
1) Auditingbfocusesbonbrules,btechniques,bandbcomputationsbrequiredbtobpreparebandbanaly
zebfinancialbinformation.
ANSWER:b FALSEbDifficulty
:b1bEasy
Topic:b ThebImportancebforbStudyingbAuditing
LearningbObjective:b 01-
01bUnderstandbwhybstudyingbauditingbcanbbebvaluablebtobyoubwhetherborbnotbyoubplanbtobbecom
ebanbauditor,bandbwhybitbisbdifferentbfrombstudyingbaccounting.
Bloom's:b RememberbAAC
SB:b Communication
AICPA:b BBbLegal;bFNbDecisionbMaking
2) Decisionbmakersbdemandbreliablebinformationbthatbisbprovidedbbybaccountants.
ANSWER:b TRUEbDifficulty
:b1bEasy
Topic:b ThebDemandbforbAuditingbandbAssurance
LearningbObjective:b 01-
02bUnderstandbthebdemandbforbauditingbandbbebablebtobexplainbthebdesiredbcharacteristicsbofbau
ditorsbandbauditbservicesbthroughbanbanalogybtobabhousebinspectorbandbabhousebinspectionbservic
e.
Bloom's:b UnderstandbAA
CSB:b Communication
AICPA:b FNbDecisionbMaking;bBBbIndustry
3) Informationbasymmetrybseldomboccurs.
ANSWER:b FALSEbDifficulty
:b2bMedium
Topic:b ThebDemandbforbAuditingbandbAssurance
LearningbObjective:b 01-
02bUnderstandbthebdemandbforbauditingbandbbebablebtobexplainbthebdesiredbcharacteristicsbofbau
ditorsbandbauditbservicesbthroughbanbanalogybtobabhousebinspectorbandbabhousebinspectionbservic
e.
Bloom's:b Apply
AACSB:b Communication
AICPA:b BBbIndustry;bFNbReporting
