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TEST BANK For Auditing & Assurance Services: A Systematic Approach, 11th Edition By William Messier Jr, Steven Glover, Verified Chapters 1 - 21, Complete Newest Version$20.49
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 11th Edition By William Messier Jr, Steven Glover, Verified Chapters 1 - 21, Complete Newest Version
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 11th Edition By William Messier Jr, Steven Glover, Verified Chapters 1 - 21, Complete Newest Version TEST BANK For Auditing & Assurance Services: A Systematic Approach, 11th Edition By William Messier Jr, Steven Glover, Verified Ch...
An Introduction to Assurance and Financial Statement Auditing
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True / False Questions
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1. Independence standards are required for audits of public companies, but not for auditso
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f private companies.
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True False
2. Decision makers demand reliable information that is provided by accountants.
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True False
3. Information asymmetry seldom occurs. L M L M L M
True False
4. Conflicts of interest often occur between absentee owners and managers.
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True False
5. Auditing services and attestation services are the same.
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True False
6. Auditing is a type of attest service.
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True False
7. Testing all transactions that occurred during the period is cost prohibitive.
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True False
Multiple Choice Questions LM LM
, Auditing & Assurance Services LM LM LM
8. Why do auditors generally use a sampling approach to evidence gathering?
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A. Auditors are experts and do not need to look at much to know whether the financial st
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atements are correct or not. LM LM LM LM
B. Auditors must balance the cost of the audit with the need forp
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recision.
C. Auditors must limit their exposure to their auditee to maintaini
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ndependence.
D. The auditor's relationship with the auditee is generally adversarial, so the auditor willn
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ot have access to all of the financial information of the company.
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9. 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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A. If materiality increases, so will th
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esample size.
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B. If the desired level of assurance increases, sample sizes can be
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smaller.
C. If materiality decreases, sample size will need toi
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ncrease.
D. There is no relationship between sample size and materiality or the desired levelo
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f assurance.
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10. Which of the following statements about the study of auditing is NOT true?
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A. The study of auditing can be valuable to future accountants and business decision
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makers 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. LM LM LM LM LM LM
C. The study of auditing focuses on learning the rules, techniques, and computations r
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equired to analyze financial statements. LM LM LM LM
D. The study of auditing begins with the understanding of a coherent logical framework a
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nd techniques useful for gathering and analyzing evidence about others' assertions.
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11. The basic purpose of a financial statement audit is to
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A. Detect M
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fraud.
B. Examine individual transactions so that the auditor may certify as to t
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heir validity. LM
C. Provide assurance regarding whether the auditee's financial statements are
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fairly stated. LM
D. Assure the consistent application of correct accounting
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procedures.
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