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TEST BANK FOR AUDITING AND
ASSURANCE SERVICES: A SYSTEMATIC
APPROACH (12TH EDITION) BY MESSIER –
COMPLETE VERIFIED QUESTIONS &
ANSWERS
,Medstudy.com
TABLE OF CONTENT
Chapter 1: An Introduction to Assurance and Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidence and Documentation
Chapter 6: Internal Control in a Financial Statement Audit
Chapter 7: Auditing Internal Control over Financial Reporting
Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls
Chapter 9: 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 Management
Chapter 20: Legal Liability
Chapter 21: Assurance, Attestation, and Internal Auditing Services
,Medstudy.com
Auditing & Assurance Services: A Systematic Approach, 12th ed. (Messier)
Chapter 01: An Introduction to Assurance and Financial Statement Auditing
1) Auditing focuses on rules, techniques, and computations required to prepare and
analyze financial information.
ANSWER: FALSE Difficulty: 1 Easy
Topic: The Importance of Studying Auditing Learning Objective: 01-
01 Understand why studying auditing can be valuable to you whether or not you plan to become
an auditor and why it is different from studying accounting.
Bloom's: Remember AACSB: Communication
AICPA: BB Legal; FN Decision Making
2) Decision-makers demand reliable information that is provided by accountants.
ANSWER: TRUE Difficulty: 1 Easy
Topic: The Demand for Auditing and Assurance Learning Objective: 01-
02 Understand the demand for auditing and be able to explain the desired characteristics of
auditors and audit services through an analogy to a house inspector and a house inspection
service.
Bloom's: Understand AA CSB: Communication
AICPA: FN Decision Making; BB Industry
3) Information asymmetry seldom occurs.
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ANSWER: FALSE Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance Learning Objective: 01-
02 Understand the demand for auditing and be able to explain the desired characteristics of
auditors and audit services through an analogy to a house inspector and a house inspection
service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
4) Conflicts of interest often occur between absentee owners and managers.
ANSWER: TRUE Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance Learning Objective: 01-
02 Understand the demand for auditing and be able to explain the desired characteristics of
auditors and audit services through an analogy to a house inspector and a house inspection
service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
5) Auditing services and attestation services are the same.
ANSWER: FALSE Difficulty: 1 Easy
Topic: Auditing, Attestation, and Assurance Services Defined Learning Objective: 01-
03 Understand the relationships among auditing, attestation, and assurance services. Bloom's:
Understand AA
TEST BANK FOR AUDITING AND
ASSURANCE SERVICES: A SYSTEMATIC
APPROACH (12TH EDITION) BY MESSIER –
COMPLETE VERIFIED QUESTIONS &
ANSWERS
,Medstudy.com
TABLE OF CONTENT
Chapter 1: An Introduction to Assurance and Financial Statement Auditing
Chapter 2: The Financial Statement Auditing Environment
Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
Chapter 4: Risk Assessment
Chapter 5: Evidence and Documentation
Chapter 6: Internal Control in a Financial Statement Audit
Chapter 7: Auditing Internal Control over Financial Reporting
Chapter 8: Audit Sampling: An Overview and Application to Tests of Controls
Chapter 9: 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 Management
Chapter 20: Legal Liability
Chapter 21: Assurance, Attestation, and Internal Auditing Services
,Medstudy.com
Auditing & Assurance Services: A Systematic Approach, 12th ed. (Messier)
Chapter 01: An Introduction to Assurance and Financial Statement Auditing
1) Auditing focuses on rules, techniques, and computations required to prepare and
analyze financial information.
ANSWER: FALSE Difficulty: 1 Easy
Topic: The Importance of Studying Auditing Learning Objective: 01-
01 Understand why studying auditing can be valuable to you whether or not you plan to become
an auditor and why it is different from studying accounting.
Bloom's: Remember AACSB: Communication
AICPA: BB Legal; FN Decision Making
2) Decision-makers demand reliable information that is provided by accountants.
ANSWER: TRUE Difficulty: 1 Easy
Topic: The Demand for Auditing and Assurance Learning Objective: 01-
02 Understand the demand for auditing and be able to explain the desired characteristics of
auditors and audit services through an analogy to a house inspector and a house inspection
service.
Bloom's: Understand AA CSB: Communication
AICPA: FN Decision Making; BB Industry
3) Information asymmetry seldom occurs.
, Medstudy.com
ANSWER: FALSE Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance Learning Objective: 01-
02 Understand the demand for auditing and be able to explain the desired characteristics of
auditors and audit services through an analogy to a house inspector and a house inspection
service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
4) Conflicts of interest often occur between absentee owners and managers.
ANSWER: TRUE Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance Learning Objective: 01-
02 Understand the demand for auditing and be able to explain the desired characteristics of
auditors and audit services through an analogy to a house inspector and a house inspection
service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
5) Auditing services and attestation services are the same.
ANSWER: FALSE Difficulty: 1 Easy
Topic: Auditing, Attestation, and Assurance Services Defined Learning Objective: 01-
03 Understand the relationships among auditing, attestation, and assurance services. Bloom's:
Understand AA
