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Test Bank for Auditing & Assurance Services A Systematic Approach 12th Edition by William Messier Jr, Steven Glover, Douglas Prawit || Complete Solution ||Grade A+.
Test Bank for Auditing & Assurance Services A Systematic Approach 12th Edition by William Messier Jr, Steven Glover, Douglas Prawit || Complete Solution ||Grade A+.Test Bank for Auditing & Assurance Services A Systematic Approach 12th Edition by William Messier Jr, Steven Glover, Douglas Prawit || ...
Auditing & Assurance Services A Systematic Approach 12e Messier
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ij Chapter 1-21 Answers are at the End of Each Chapterij ij ij ij ij ij ij ij
Chapter 1 ij
Student name: ij
1) Why do auditors often use a sampling approach to evidence gathering?
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1) ij
A) Auditors are experts and do not need to look at much to know whether the financial
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statements are correct or not.
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B) Auditors must balance the cost of the audit with the need for precision and for some types of
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evidence, computer data analytic approaches can’t be used.
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C) Auditors must limit their exposure to their auditee to maintain independence.
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D) The auditor's relationship with the auditee is generally adversarial, so the auditor will not
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have access to all of the financial information of the company.
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Question Details ij
AACSB : Communication ij i j
AICPA : FN Decision Making
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Accessibility : Keyboard Navigation ij ij ij
Difficulty : 1 Easy
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AICPA : BB Industry
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Bloom's : Understand
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Learning Objective : 01-05 Understand why sampling is important in an audit.
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Gradable : automatic
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Accessibility : Screen Reader Compatible ij ij ij ij
Topic : The Audit Process
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2) Which of the following statements best describes a relationship between sample size and
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other elements of auditing?
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2) ij
, A) If materiality increases, so will the sample size. ij ij ij ij ij ij ij
B) If the desired level of assurance increases, sample sizes can be smaller.
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C) If materiality decreases, sample size will need to increase.
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D) There is no relationship between sample size and materiality or the desired level of ij ij ij ij ij ij ij ij ij ij ij ij ij
ij assurance.
Question Details ij
Accessibility : Keyboard Navigation ij ij ij
Bloom's : Apply
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Difficulty : 2 Medium ij ij ij
AICPA : BB Critical Thinking
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AACSB
ij : Analytical ij i j
Thinking AICPA : FN Risk
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Analysis
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Learning Objective : 01-05 Understand why sampling is important in an audit.
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Gradable : automatic
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Accessibility : Screen Reader Compatible ij ij ij ij
Topic : The Audit Process
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3) Which of the following statements about the study of auditing is NOT true?
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3) ij
A) The study of auditing can be valuable to future accountants and business decision makers
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whether or not they plan to become auditors.
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B) The study of auditing focuses on learning the analytical and logical skills necessary to
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evaluate the relevance and reliability of information.
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C) The study of auditing focuses on learning the rules, techniques, and computations required to
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analyze financial statements for making investment recommendations.
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D) The study of auditing begins with the understanding of a coherent logical framework and
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techniques useful for gathering and analyzing evidence about others’ assertions.
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,Question Details ij
AACSB : Communication ij i j
AICPA : FN Decision Making
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Accessibility : Keyboard Navigation ij ij ij
Learning Objective : 01-01 Understand why studying auditing can be valuable to you whether or not you
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AICPA : BB Industry
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Difficulty : 2 Medium ij ij ij
Bloom's : Analyze
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Gradable : automatic
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Accessibility : Screen Reader Compatible ij ij ij ij
Topic : The Importance for Studying Auditing
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4) The basic definition of auditing essentially indicates that, overall, auditing is a process to:
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4) ij
A) detect fraud. ij
B) examine individual transactions so that the auditor may certify as to their validity.
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C) objectively obtain and evaluate evidence regarding assertions made by another party. ij ij ij ij ij ij ij ij ij ij
D) assure the consistent application of correct accounting procedures.
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Question Details ij
AACSB : Communication ij i j
Accessibility : Keyboard Navigation
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Bloom's : Remember
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Difficulty : 1 Easy ij ij ij
AICPA : FN Reporting
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Learning Objective : 01-03 Know the basic definition of a financial statement audit.
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AICPA : BB Critical Thinking
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Gradable : automatic ij ij
Accessibility : Screen Reader Compatible ij ij ij ij
Topic : Auditing, Attest, and Assurance Services Defined
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5) Assurance services may improve all of the following except: ij ij ij ij ij ij ij ij
5) ij
, A) relevance.
B) credibility.
C) periodicity.
D) reliability.
Question Details ij
AACSB : Communicationij i j
Accessibility : Keyboard Navigation
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Bloom's : Remember
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Difficulty : 1 Easy ij ij ij
AICPA : BB Industry
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AICPA : FN Reporting
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Learning Objective : 01-03 Know the basic definition of a financial statement audit.
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Gradable : automatic
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Accessibility : Screen Reader Compatible ij ij ij ij
Topic : Auditing, Attest, and Assurance Services Defined
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6) Evidence is reliable if it: ij ij ij ij
6) ij
A) signals the true state of a management assertion. ij ij ij ij ij ij ij
B) applies to the period being audited. ij ij ij ij ij
C) relates to the audit assertion being tested. ij ij ij ij ij ij
D) is sufficient to justify a conclusion. ij ij ij ij ij
Question Details ij
Accessibility : Keyboard Navigation ij ij ij
Difficulty : 1 Easy
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Bloom's : Understand
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Learning Objective : 01-04 Understand the fundamental concepts that underlie financial statement audi
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AICPA : BB Critical Thinking
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AACSB : Analytical Thinking
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AICPA : FN Measurement
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Topic : Fundamental Concepts in Conducting a Financial Statement Audit
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Gradable : automatic
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Accessibility : Screen Reader Compatible ij ij ij ij
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