TEST BANK For Auditing & Assurance Services: A Systematic Approach, 12th Edition
Chapters 1 - 21 Complete
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 12th Edition
Chapters 1 - 21 Complete
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 12th Edition ...
,Auditing & Assurance Services: A Systematic Approach, 12e (Messier)
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Chapter 1
I!l An Introduction to Assurance and Financial Statement
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Auditing
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1) Auditing focuses on rules, techniques, and computations required to prepare and analyze
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financial information.
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ANSWER: FALSE I ! l
Difficulty: 1 Easy
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Topic: The Importance for Studying Auditing
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Learning Objective: 01-01 Understand why studying auditing can be valuable to you whether
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or not you plan to become an auditor, and why it is different from studying accounting.
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Bloom's: Remember I ! l
AACSB:
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Communication
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AICPA: BB Legal; FN Decision Making
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2) Decision makers demand reliable information that is provided by accountants.
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ANSWER: TRUE I ! l
Difficulty: 1 Easy
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Topic: The Demand for Auditing and Assurance
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Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
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desired characteristics of auditors and audit services through an analogy to a house inspector
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and a house inspection service.
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Bloom's: Understand I ! l
AACSB:
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Communication
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AICPA: FN Decision Making; BB Industry
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3) Information asymmetry seldom occurs. I!l I!l I!l
ANSWER: FALSE I ! l
Difficulty: 2 Medium
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Topic: The Demand for Auditing and Assurance
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Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
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desired characteristics of auditors and audit services through an analogy to a house inspector
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and a house inspection service.
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Bloom's: Apply I ! l
AACSB: Communication I ! l
AICPA: BB Industry; FN Reporting I ! l I!l I!l I!l
, 4) Conflicts of interest often occur between absentee owners and managers.
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ANSWER: TRUE I ! l
Difficulty: 2 Medium
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Topic: The Demand for Auditing and Assurance
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Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
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desired characteristics of auditors and audit services through an analogy to a house inspector
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and a house inspection service.
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Bloom's: Apply I ! l
AACSB: Communication I ! l
AICPA: BB Industry; FN Reporting I ! l I!l I!l I!l
5) Auditing services and attestation services are the same.
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ANSWER: FALSE I ! l
Difficulty: 1 Easy
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Topic: Auditing, Attest, and Assurance Services Defined
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Learning Objective: 01-03 Understand the relationships among auditing, attestation, and
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assurance services.
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Bloom's: Understand I ! l
AACSB:
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Communication
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AICPA: BB Industry; FN Reporting I ! l I!l I!l I!l
6) Auditing is a type of attest service. I!l I!l I!l I!l I!l I!l
ANSWER: TRUE I ! l
Difficulty: 1 Easy
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Topic: Auditing, Attest, and Assurance Services Defined
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Learning Objective: 01-03 Understand the relationships among auditing, attestation, and
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assurance services.; 01-04 Know the basic definition of a financial statement audit.
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Bloom's: Understand I ! l
AACSB:
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Communication
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AICPA: BB Industry; FN Reporting I ! l I!l I!l I!l
7) Testing all transactions that occurred during the period is cost prohibitive.
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ANSWER: TRUE I ! l
Difficulty: 2 Medium
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Topic: The Audit
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Process
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Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
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only a sample of transactions that occurred.
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Bloom's: Apply I ! l
AACSB: Communication I ! l
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