TEST BANK For Auditing & Assurance Services:
A Systematic Approach, 12th Edition
,Table Of Content
Chapter 1: An Introduction To Assurance And Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning, Types Of Audit Tests, And Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidence And Documentation
Chapter 6: Internal Control In A Financial Statement Audit
Chapter 7: Auditing Internal Control Over Financial Reporting
Chapter 8: Audit Sampling: An Overview And Application To Tests Of Controls
Chapter 9: Audit Sampling: An Application To Substantive Tests Of Account
Balances Chapter 10: Auditing The Revenue Process
Chapter 11: Auditing The Purchasing Process
Chapter 12: Auditing The Human Resource Management Process
Chapter 13: Auditing The Inventory Management Process
Chapter 14: Auditing The Financing/Investing Process: Prepaid Expenses, Intangible Assets,
And Property, Plant, And Equipment
Chapter 15: Auditing The Financing/Investing Process: Long-Term Liabilities, Stockholders’
Equity, And Income Statement Accounts
Chapter 16: Auditing The Financing/Investing Process: Cash And
Investments Chapter 17: Completing The Audit Engagement
Chapter 18: Reports On Audited Financial Statements
Chapter 19: Professional Conduct, Independence, And Quality Management
Chapter 20: Legal Liability
Chapter 21: Assurance, Attestation, And Internal Auditing Services
,Auditing & Assurance Services: A Systematic Approach, 12e (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
2) Decision Makers Demand Reliable Information That Is Provided By Accountants.
ANSWER: TRUE
Difficulty: 1 Easy
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
AACSB: Communication
AICPA: FN Decision Making; BB Industry
3) Information Asymmetry Seldom Occurs.
ANSWER: FALSE
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
, 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
Difficulty: 1 Easy
Topic: Auditing, Attest, And Assurance Services Defined
Learning Objective: 01-03 Understand The Relationships Among Auditing, Attestation, And
Assurance Services.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
6) Auditing Is A Type Of Attest Service.
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.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
7) Testing All Transactions That Occurred During The Period Is Cost Prohibitive.
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 That Occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FN Decision Making; BB Critical Thinking
A Systematic Approach, 12th Edition
,Table Of Content
Chapter 1: An Introduction To Assurance And Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning, Types Of Audit Tests, And Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidence And Documentation
Chapter 6: Internal Control In A Financial Statement Audit
Chapter 7: Auditing Internal Control Over Financial Reporting
Chapter 8: Audit Sampling: An Overview And Application To Tests Of Controls
Chapter 9: Audit Sampling: An Application To Substantive Tests Of Account
Balances Chapter 10: Auditing The Revenue Process
Chapter 11: Auditing The Purchasing Process
Chapter 12: Auditing The Human Resource Management Process
Chapter 13: Auditing The Inventory Management Process
Chapter 14: Auditing The Financing/Investing Process: Prepaid Expenses, Intangible Assets,
And Property, Plant, And Equipment
Chapter 15: Auditing The Financing/Investing Process: Long-Term Liabilities, Stockholders’
Equity, And Income Statement Accounts
Chapter 16: Auditing The Financing/Investing Process: Cash And
Investments Chapter 17: Completing The Audit Engagement
Chapter 18: Reports On Audited Financial Statements
Chapter 19: Professional Conduct, Independence, And Quality Management
Chapter 20: Legal Liability
Chapter 21: Assurance, Attestation, And Internal Auditing Services
,Auditing & Assurance Services: A Systematic Approach, 12e (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
2) Decision Makers Demand Reliable Information That Is Provided By Accountants.
ANSWER: TRUE
Difficulty: 1 Easy
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
AACSB: Communication
AICPA: FN Decision Making; BB Industry
3) Information Asymmetry Seldom Occurs.
ANSWER: FALSE
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
, 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
Difficulty: 1 Easy
Topic: Auditing, Attest, And Assurance Services Defined
Learning Objective: 01-03 Understand The Relationships Among Auditing, Attestation, And
Assurance Services.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
6) Auditing Is A Type Of Attest Service.
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.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
7) Testing All Transactions That Occurred During The Period Is Cost Prohibitive.
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 That Occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FN Decision Making; BB Critical Thinking
