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Auditing: A Practical Approach with Data Analytics 2nd Edition by Laura Davis Wiley, Johnson and Moroney -All Chapters 1-16 | TEST BANK $27.02
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Auditing: A Practical Approach with Data Analytics 2nd Edition by Laura Davis Wiley, Johnson and Moroney -All Chapters 1-16 | TEST BANK

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TEST BANK for Auditing: A Practical Approach with Data Analytics 2nd Edition by Laura Davis Wiley, Raymond N. Johnson and Robyn Moroney ISBN-13 978-6. All Chapters 1-16 (Complete Download) . 1453 Pages TABLE OF CONTENTS Chapter 1 Introduction and Overview of Audit and Assurance Page : 73 Chapter 2 ...

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  • 30 januari 2023
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  • auditing a practical approach with data analytics 2nd edition by laura davis wiley
  • test bank for auditing a practical approach with data analytics 2nd edition by laura davis wiley
  • raymond n johns

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Voorbeeld van de inhoud

,
,4) Private companies, or non-issuers, are not required by the U.S. government to have an annual
financial statement audit.
Answer: TRUE
Explanation: Private companies, or non-issuers, are not required by the U.S. government to
have an annual financial statement audit, but often other interested users, such as a bank or
lender, may request that a private company provide audited financial statements.
Diff: 1
LO: 2
Bloom: Knowledge
Min: 1
AACSB: Analytic
AICPA: AC: Reporting

5) One of the reasons there is a demand for financial statement audits is that users of financial
statements often lack accounting and legal knowledge to fully understand complex accounting
and disclosure choices.
Answer: TRUE
Explanation: Financial statements are complex, the amounts are often affected by significant
estimates, and the disclosures often require significant knowledge and experience to evaluate.
Most financial statement users do not have the accounting and legal knowledge to assess the
reasonableness of complex accounting and disclosure choices being made by the company.
Diff: 1
LO: 3
Bloom: Comprehension
Min: 1
AACSB: Analytic
AICPA: PC: Communication

6) In financial accounting, the balance sheet is a statement of financial position.
Answer: TRUE
Explanation: In financial accounting, the financial statements include the balance sheet
(statement of financial position), income statement (statement of comprehensive income),
statement of cash flows, statement of changes in equity and accompanying notes.
Diff: 1
LO: 3
Bloom: Knowledge
Min: 1
AACSB: Analytic
AICPA: PC: Communication




2

, 7) Business valuation falls within the purview of non-assurance services.
Answer: TRUE
Explanation: Many of these accounting firms provide non-assurance (or non-audit) services as
well as assurance services. These non-assurance services include management consulting,
business valuation, mergers and acquisitions, insolvency, tax and accounting services.
Diff: 1
LO: 4
Bloom: Knowledge
Min: 1
AACSB: Analytic
AICPA: AC: Measurement Analysis and Interpretation

8) Securities Exchange Act of 1934 regulates the ongoing trading of securities after the initial
public offering and requires the annual audit of a public company's financial statements.
Answer: TRUE
Explanation: The Securities Exchange Act of 1934 regulates the ongoing trading of securities
after the initial public offering and requires the annual audit of a public company's financial
statements.
Diff: 1
LO: 5
Bloom: Knowledge
Min: 1
AACSB: Ethics
AICPA: BC: Governance Perspective

9) The Securities Act of 1933 enhances annual financial disclosures for public companies and
placed more emphasis on corporate responsibility.
Answer: FALSE
Explanation: The Securities Act of 1933 regulates the disclosure of financial information in a
company's initial public offering of stock and requires that the financial information be audited.
Diff: 1
LO: 5
Bloom: Knowledge
Min: 1
AACSB: Ethics
AICPA: BC: Governance Perspective

10) Neither client characteristics nor actions of the auditor affect the audit risk.
Answer: FALSE
Explanation: Audit risk is affected by client characteristics as well as actions of the auditor.
Diff: 1
LO: 6
Bloom: Knowledge
Min: 1
AACSB: Ethics
AICPA: AC: Reporting


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