TEST BANK For
Auditing & Assurance Services: A Systematic
Approach, 12th Edition
Chapters 1 - 21 Complete
,Chapterx1:xAnxIntroductionxtoxAssurancexandxFinancialxStatementxAuditing
Chapterx2:xThexFinancialxStatementxAuditingxEnvironment
Chapterx3:xAuditxPlanning,xTypesxofxAuditxTests,xandxMateriality
Chapterx4:xRiskxAssessment
Chapterx5:xEvidencexandxDocumentation
Chapterx6:xInternalxControlxinxaxFinancialxStatementxAudit
Chapterx7:xAuditingxInternalxControlxoverxFinancialxReporting
Chapterx8:xAuditxSampling:xAnxOverviewxandxApplicationxtoxTestsxofxControls
Chapterx9:xAuditxSampling:xAnxApplicationxtoxSubstantivexTestsxofxAccountxBalances
Chapterx10:xAuditingxthexRevenuexProcess
Chapterx11:xAuditingxthexPurchasingxProcess
Chapterx12:xAuditingxthexHumanxResourcexManagementxProcess
Chapterx13:xAuditingxthexInventoryxManagementxProcess
Chapterx14:xAuditingxthexFinancing/InvestingxProcess:xPrepaidxExpenses,xIntangiblexAssets,xandxProp
erty,xPlant,xandxEquipment
Chapterx15:xAuditingxthexFinancing/InvestingxProcess:xLong-
TermxLiabilities,xStockholders’xEquity,xandxIncomexStatementxAccounts
Chapterx16:xAuditingxthexFinancing/InvestingxProcess:xCashxandxInvestments
Chapterx17:xCompletingxthexAuditxEngagement
Chapterx18:xReportsxonxAuditedxFinancialxStatements
Chapterx19:xProfessionalxConduct,xIndependence,xandxQualityxManagement
Chapterx20:xLegalxLiability
Chapterx21:xAssurance,xAttestation,xandxInternalxAuditingxServices
,Auditingx&xAssurancexServices:xAxSystematicxApproach,x12ex(Messier)xChapterx1
x AnxIntroductionxtoxAssurancexandxFinancialxStatementxAuditing
1) Auditingxfocusesxonxrules,xtechniques,xandxcomputationsxrequiredxtoxpreparexandxanalyz
exfinancialxinformation.
ANSWER:x FALSExDifficulty
:x1xEasy
Topic:x ThexImportancexforxStudyingxAuditing
LearningxObjective:x 01-
01xUnderstandxwhyxstudyingxauditingxcanxbexvaluablextoxyouxwhetherxorxnotxyouxplanxtoxbecomex
anxauditor,xandxwhyxitxisxdifferentxfromxstudyingxaccounting.
Bloom's:x RememberxAAC
SB:x Communication
AICPA:x BBxLegal;xFNxDecisionxMaking
2) Decisionxmakersxdemandxreliablexinformationxthatxisxprovidedxbyxaccountants.
ANSWER:x TRUExDifficulty:
x1xEasy
Topic:x ThexDemandxforxAuditingxandxAssurance
LearningxObjective:x 01-
02xUnderstandxthexdemandxforxauditingxandxbexablextoxexplainxthexdesiredxcharacteristicsxofxaudi
torsxandxauditxservicesxthroughxanxanalogyxtoxaxhousexinspectorxandxaxhousexinspectionxservice.
Bloom's:x UnderstandxAAC
SB:x Communication
AICPA:x FNxDecisionxMaking;xBBxIndustry
3) Informationxasymmetryxseldomxoccurs.
ANSWER:x FALSExDifficulty
:x2xMedium
Topic:x ThexDemandxforxAuditingxandxAssurance
LearningxObjective:x 01-
02xUnderstandxthexdemandxforxauditingxandxbexablextoxexplainxthexdesiredxcharacteristicsxofxaudi
torsxandxauditxservicesxthroughxanxanalogyxtoxaxhousexinspectorxandxaxhousexinspectionxservice.
Bloom's:x Apply
AACSB:x Communication
AICPA:x BBxIndustry;xFNxReporting
, 4) Conflictsxofxinterestxoftenxoccurxbetweenxabsenteexownersxandxmanagers.
ANSWER:x TRUExDifficulty:
x2xMedium
Topic:x ThexDemandxforxAuditingxandxAssurance
LearningxObjective:x 01-
02xUnderstandxthexdemandxforxauditingxandxbexablextoxexplainxthexdesiredxcharacteristicsxofxaudi
torsxandxauditxservicesxthroughxanxanalogyxtoxaxhousexinspectorxandxaxhousexinspectionxservice.
Bloom's:x Apply
AACSB:x Communication
AICPA:x BBxIndustry;xFNxReporting
5) Auditingxservicesxandxattestationxservicesxarexthexsame.
ANSWER:x FALSExDifficulty
:x1xEasy
Topic:x Auditing,xAttest,xandxAssurancexServicesxDefined
LearningxObjective:x 01-
03xUnderstandxthexrelationshipsxamongxauditing,xattestation,xandxassurancexservices.
Bloom's:x UnderstandxAAC
SB:x Communication
AICPA:x BBxIndustry;xFNxReporting
6) Auditingxisxaxtypexofxattestxservice.
ANSWER:x TRUExDifficulty:
x1xEasy
Topic:x Auditing,xAttest,xandxAssurancexServicesxDefined
LearningxObjective:x 01-
03xUnderstandxthexrelationshipsxamongxauditing,xattestation,xandxassurancexservices.;x01-
04xKnowxthexbasicxdefinitionxofxaxfinancialxstatementxaudit.
Bloom's:x UnderstandxAAC
SB:x Communication
AICPA:x BBxIndustry;xFNxReporting
7) Testingxallxtransactionsxthatxoccurredxduringxthexperiodxisxcostxprohibitive.
ANSWER:x TRUExDifficulty:
x2xMediumxTopic:x ThexAu
ditxProcess
LearningxObjective:x 01-
06xBexablextoxexplainxwhyxonxmostxauditxengagementsxanxauditorxtestsxonlyxaxsamplexofxtransacti
onsxthatxoccurred.
Bloom's:x Apply
