Auditing & Assurance Services a Systematic
Approach William Messier Jr 10th Edition
Test Bank Chapter (1 to 21)
,Content: _
Chapter 01: An Introduction to Assurance and Financial Statement Auditing
Chapter 02: The Financial Statement Auditing Environment
Chapter 03: Audit Planning, Types of Audit Tests, and Materiality
Chapter 04: Risk Assessment
Chapter 05: Evidence and Documentation
Chapter 06: Internal Control in a Financial Statement Audit
Chapter 07: Auditing Internal Control over Financial Reporting
Chapter 08: Audit Sampling: An Overview and Application to Tests of
Controls
Chapter 09: 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 Control
Chapter 20: Legal Liability
Chapter 21: Assurance, Attestation, and Internal Auditing Services
, Chapter 01
An Introduction to Assurance and Financial Statement
Auditing
True / False Questions
1. Independence standards are required for audits of public companies, but not for audits
of private companies.
True False
2. Decision makers demand reliable information that is provided by accountants.
True False
3. Information asymmetry seldom occurs.
True False
4. Conflicts of interest often occur between absentee owners and managers.
True False
5. Auditing services and attestation services are the same.
True False
6. Auditing is a type of attest service.
True False
7. Testing all transactions that occurred during the period is cost prohibitive.
, True False
Multiple Choice Questions
8. Why do auditors generally use a sampling approach to evidence gathering?
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.
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.
9. Which of the following statements best describes a relationship between sample size
and other elements of auditing?
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.
10. Which of the following statements about the study of auditing is NOT true?
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.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestBankStock. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $19.99. You're not tied to anything after your purchase.
