TESTBANK FOR AUDITING A PRACTICAL APPROACH,
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4TH CANADIAN EDITION 4TH EDITION, KINDLE EDITION
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BY ROBYN MORONEY , FIONA CAMPBELL , JANE HAMI
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LTON , VALERIE WARREN
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,TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
CHAPTER 1 n z
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANC nz nz nz nz nz nz
E
CHAPTER LEARNING OBJECTIVES nz nz
1. Define an assurance engagement. nz nz nz
An assurance engagement involves an assurance provider arriving atan opinion about so
nz nz nz nz nz nz nz nz nz nz nz
me information being provided by their client toa third party. A financial statement audit i
nz nz nz nz nz nz nz nz nz nz nz nz nz nz
s one type of assuranceengagement. This engagement involves an auditor arriving at an
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nz opinionabout the fair presentation of the financial statements. The auditreport is address
nz nz nz nz nz nz nz nz nz nz nz
ed to the shareholders of the company being audited,but other users may read the finan
nz nz nz nz nz nz nz nz nz nz nz nz nz nz
cial statements. Learning aboutauditing and assurance requires an understanding of audi
nz nz nz nz nz nz nz nz nz nz
ting andassurance terminology, including terms such as audit risk, materiality,internal con
nz nz nz nz nz nz nz nz nz nz
trols, listed entity, and assertions.
nz nz nz nz
2. Explain why there is a demand for audit and assurance services.
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Financial statement users include investors (shareholders), suppliers,customers, lenders,
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employees, governments, and the general public.These groups of users demand audited
nz nz nz nz nz nz nz nz nz nz n
z financial statements because oftheir remoteness from the entity, accounting complexity, t
nz nz nz nz nz nz nz nz nz nz
heirincentivescompeting with those of the entity‘s managers, and their needfor reliable inf nz nz nz nz nz nz nz nz nz nz nz
ormation on which to base decisions. The theories usedto describe the demand for audit
nz nz nz nz nz nz nz nz nz nz nz nz nz nz
and assurance services are agencytheory, the information hypothesis, and the insurance
nz nz nz nz nz nz nz nz nz nz n
z hypothesis.
3. Differentiate between types of assurance services. nz nz nz nz nz
Assurance services include financial statement audits, complianceaudits, performance audi
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ts, comprehensive audits, internal audits,and assurance on corporate social responsibility
nz nz nz nz nz nz nz nz nz
nz (CSR) disclosures. nz
4. Explain the different levels of assurance.
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The different levels of assurance include reasonable assurance, whichis the highest level
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of assurance, limited assurance, and no assurance.Reasonable assurance is provided o
nz nz nz nz nz nz nz nz nz nz
n an audit of a company‘sfinancial statements. Limited assurance is provided in a review
nz nz nz nz nz nz nz nz nz nz nz nz nz
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,TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
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, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
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https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
5. Outline different audit opinionsnz nz nz
An auditor can issue an unmodified opinion, also known as a cleanreport, or an unmodifie
nz nz nz nz nz nz nz nz nz nz nz nz nz nz
d opinion with an emphasis of matter paragraph.Alternatively, a modified opinion may be
nz nz nz nz nz nz nz nz nz nz nz nz n
z issued as a qualified, anadverse, or a disclaimer of opinion.
nz nz nz nz nz nz nz nz nz
6. Differentiate between the roles of the preparer and the auditor, and discuss t
nz nz nz nz nz nz nz nz nz nz nz nz
he different firms that provide assurance services.
nz nz nz nz nz nz
It is the responsibility of a company‘s governing body to ensure thatits financial stateme
nz nz nz nz nz nz nz nz nz nz nz nz nz
nts are relevant, reliable, comparable, understandable,and true and fair. It is the responsib
nz nz nz nz nz nz nz nz nz nz nz nz
ility of the auditor to form anopinion on the fair presentation of the financial statements. I
nz nz nz nz nz nz nz nz nz nz nz nz nz nz nz
n doing,so 1- 2 Auditing: A Practical Approach, Fourth Canadian Edition
nz nz nz nz nz nz nz nz nz nz
the auditor must maintain professional scepticism and utilize professionaljudgement and d
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ue care. nz
The firms that provide assurance services include the Big-
nz nz nz nz nz nz nz nz
4international firms, the national firms (with international links),local and regional firms, a
nz nz nz nz nz nz nz nz nz nz nz
nd consulting firms that tend to specializein assurance of CSR and environmental disclo
nz nz nz nz nz nz nz nz nz nz nz nz
sures.
7. Identify the different regulators, legislation, and regulations surrounding th
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e assurance process.
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lO M nz nz nz nz nz nz nz nz nz
o AR c P S D | 3 08 78 49 5
Introduction and Overview of Audit and Assurance nz nz nz nz nz nz 1- 3
nz nz
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nz nz nz nz nz nz
4TH CANADIAN EDITION 4TH EDITION, KINDLE EDITION
nz nz nz nz nz nz nz
BY ROBYN MORONEY , FIONA CAMPBELL , JANE HAMI
nz nz nz nz nz nz nz nz
LTON , VALERIE WARREN
nz nz nz
,TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
CHAPTER 1 n z
INTRODUCTION AND OVERVIEW OF AUDIT AND ASSURANC nz nz nz nz nz nz
E
CHAPTER LEARNING OBJECTIVES nz nz
1. Define an assurance engagement. nz nz nz
An assurance engagement involves an assurance provider arriving atan opinion about so
nz nz nz nz nz nz nz nz nz nz nz
me information being provided by their client toa third party. A financial statement audit i
nz nz nz nz nz nz nz nz nz nz nz nz nz nz
s one type of assuranceengagement. This engagement involves an auditor arriving at an
nz nz nz nz nz nz nz nz nz nz nz nz
nz opinionabout the fair presentation of the financial statements. The auditreport is address
nz nz nz nz nz nz nz nz nz nz nz
ed to the shareholders of the company being audited,but other users may read the finan
nz nz nz nz nz nz nz nz nz nz nz nz nz nz
cial statements. Learning aboutauditing and assurance requires an understanding of audi
nz nz nz nz nz nz nz nz nz nz
ting andassurance terminology, including terms such as audit risk, materiality,internal con
nz nz nz nz nz nz nz nz nz nz
trols, listed entity, and assertions.
nz nz nz nz
2. Explain why there is a demand for audit and assurance services.
nz nz nz nz nz nz nz nz nz nz
Financial statement users include investors (shareholders), suppliers,customers, lenders,
nz nz nz nz nz nz nz nz
employees, governments, and the general public.These groups of users demand audited
nz nz nz nz nz nz nz nz nz nz n
z financial statements because oftheir remoteness from the entity, accounting complexity, t
nz nz nz nz nz nz nz nz nz nz
heirincentivescompeting with those of the entity‘s managers, and their needfor reliable inf nz nz nz nz nz nz nz nz nz nz nz
ormation on which to base decisions. The theories usedto describe the demand for audit
nz nz nz nz nz nz nz nz nz nz nz nz nz nz
and assurance services are agencytheory, the information hypothesis, and the insurance
nz nz nz nz nz nz nz nz nz nz n
z hypothesis.
3. Differentiate between types of assurance services. nz nz nz nz nz
Assurance services include financial statement audits, complianceaudits, performance audi
nz nz nz nz nz nz nz nz
ts, comprehensive audits, internal audits,and assurance on corporate social responsibility
nz nz nz nz nz nz nz nz nz
nz (CSR) disclosures. nz
4. Explain the different levels of assurance.
nz nz nz nz nz
The different levels of assurance include reasonable assurance, whichis the highest level
nz nz nz nz nz nz nz nz nz nz nz nz
of assurance, limited assurance, and no assurance.Reasonable assurance is provided o
nz nz nz nz nz nz nz nz nz nz
n an audit of a company‘sfinancial statements. Limited assurance is provided in a review
nz nz nz nz nz nz nz nz nz nz nz nz nz
acompany‘s f na Dsotw
ante
l om ednbtsy:.BNRo
ade aTsEsRuSrTaUnDcIeESs| jp
I GH amroohvradbehd
asan
70a
@c om
gm ail.p
com nengagem
Weannttt.o earn $1.236
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,TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
nz of
acompany‘s f na Dsotw
ante
l om ednbtsy:.BNRo
ade aTsEsRuSrTaUnDcIeESs| jp
I GH amroohvradbehd
asan
70a
@c om
gm ail.p
com nengagem
Weannttt.o earn $1.236
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, TEST BANK for Auditing A Practical Approach, 4th Canadian Edition Moroney, Campbell, Warren
Stuvia.com - The Marketplace to Buy and Sell your Study Material
https://browsegrades.net/singlePaper/416762/testbank-for-auditing-a-practical-approach-4th-c
5. Outline different audit opinionsnz nz nz
An auditor can issue an unmodified opinion, also known as a cleanreport, or an unmodifie
nz nz nz nz nz nz nz nz nz nz nz nz nz nz
d opinion with an emphasis of matter paragraph.Alternatively, a modified opinion may be
nz nz nz nz nz nz nz nz nz nz nz nz n
z issued as a qualified, anadverse, or a disclaimer of opinion.
nz nz nz nz nz nz nz nz nz
6. Differentiate between the roles of the preparer and the auditor, and discuss t
nz nz nz nz nz nz nz nz nz nz nz nz
he different firms that provide assurance services.
nz nz nz nz nz nz
It is the responsibility of a company‘s governing body to ensure thatits financial stateme
nz nz nz nz nz nz nz nz nz nz nz nz nz
nts are relevant, reliable, comparable, understandable,and true and fair. It is the responsib
nz nz nz nz nz nz nz nz nz nz nz nz
ility of the auditor to form anopinion on the fair presentation of the financial statements. I
nz nz nz nz nz nz nz nz nz nz nz nz nz nz nz
n doing,so 1- 2 Auditing: A Practical Approach, Fourth Canadian Edition
nz nz nz nz nz nz nz nz nz nz
the auditor must maintain professional scepticism and utilize professionaljudgement and d
nz nz nz nz nz nz nz nz nz nz
ue care. nz
The firms that provide assurance services include the Big-
nz nz nz nz nz nz nz nz
4international firms, the national firms (with international links),local and regional firms, a
nz nz nz nz nz nz nz nz nz nz nz
nd consulting firms that tend to specializein assurance of CSR and environmental disclo
nz nz nz nz nz nz nz nz nz nz nz nz
sures.
7. Identify the different regulators, legislation, and regulations surrounding th
nz nz nz nz nz nz nz nz
e assurance process.
nz nz
lO M nz nz nz nz nz nz nz nz nz
o AR c P S D | 3 08 78 49 5
Introduction and Overview of Audit and Assurance nz nz nz nz nz nz 1- 3
nz nz
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