Test Bank For Auditing & Assurance Services A Systematic Approach 12th Edition by William Messier Jr, Steven Glover, Douglas Prawit |All Chapters Included |Complete Latest Guide.

Test Bank For Auditing & Assurance Services A Systematic Approach 12th Edition by William Messier Jr, Steven Glover, Douglas Prawit |All Chapters Included |Complete Latest Guide. Answers are at the End of Each Chapter Chapter 1 Student name:__________ 1) Why do auditors often use a sampling approach to evidence gathering? 1) ______ A) Auditors are experts and do not need to look at much to know whether the financial statements are correct or not. B) Auditors must balance the cost of the audit with the need for precision and for some types of evidence, computer data analytic approaches can’t be used. C) Auditors must limit their exposure to their auditee to maintain independence. D) The auditor's relationship with the auditee is generally adversarial, so the auditor will not have access to all of the financial information of the company. Question Details AACSB : Communication AICPA : FN Decision Making Accessibility : Keyboard Navigation Difficulty : 1 Easy AICPA : BB Industry Bloom's : Understand Learning Objective : 01-05 Understand why sampling is important in an audit. Gradable : automatic Accessibility : Screen Reader Compatible Topic : The Audit Process 2) Which of the following statements best describes a relationship between sample size and other elements of auditing? 2) ______ A) If materiality increases, so will the sample size. B) If the desired level of assurance increases, sample sizes can be smaller. C) If materiality decreases, sample size will need to increase. D) There is no relationship between sample size and materiality or the desired level of assurance. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : 2 Medium AICPA : BB Critical Thinking AACSB : Analytical Thinking AICPA : FN Risk Analysis Learning Objective : 01-05 Understand why sampling is important in an audit. Gradable : automatic Accessibility : Screen Reader Compatible Topic : The Audit Process 3) Which of the following statements about the study of auditing is NOT true? 3) ______ A) The study of auditing can be valuable to future accountants and business decision makers whether or not they plan to become auditors. B) The study of auditing focuses on learning the analytical and logical skills necessary to evaluate the relevance and reliability of information. C) The study of auditing focuses on learning the rules, techniques, and computations required to analyze financial statements for making investment recommendations. D) The study of auditing begins with the understanding of a coherent logical framework and techniques useful for gathering and analyzing evidence about others’ assertions. Question Details AACSB : Communication AICPA : FN Decision Making Accessibility : Keyboard Navigation Learning Objective : 01-01 Understand why studying auditing can be valuable to you whether or not you AICPA : BB Industry Difficulty : 2 Medium Bloom's : Analyze Gradable : automatic Accessibility : Screen Reader Compatible Topic : The Importance for Studying Auditing 4) The basic definition of auditing essentially indicates that, overall, auditing is a process to: 4) ______ A) detect fraud. B) examine individual transactions so that the auditor may certify as to their validity. C) objectively obtain and evaluate evidence regarding assertions made by another party. D) assure the consistent application of correct accounting procedures. Question Details AACSB : Communication Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy AICPA : FN Reporting Learning Objective : 01-03 Know the basic definition of a financial statement audit. AICPA : BB Critical Thinking Gradable : automatic Accessibility : Screen Reader Compatible Topic : Auditing, Attest, and Assurance Services Defined 5) Assurance services may improve all of the following except: 5) ______ A) relevance. B) credibility. C) periodicity. D) reliability. Question Details AACSB : Communication Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy AICPA : BB Industry AICPA : FN Reporting Learning Objective : 01-03 Know the basic definition of a financial statement audit. Gradable : automatic Accessibility : Screen Reader Compatible Topic : Auditing, Attest, and Assurance Services Defined 6) Evidence is reliable if it: 6) ______ A) signals the true state of a management assertion. B) applies to the period being audited. C) relates to the audit assertion being tested. D) is sufficient to justify a conclusion. Question Details Accessibility : Keyboard Navigation Difficulty : 1 Easy Bloom's : Understand Learning Objective : 01-04 Understand the fundamental concepts that underlie financial statement audi AICPA : BB Critical Thinking AACSB : Analytical Thinking AICPA : FN Measurement Topic : Fundamental Concepts in Conducting a Financial Statement Audit Gradable : automatic Accessibility : Screen Reader Compatible 7) Which of the following best describes the concept of audit risk? 7) ______ A) The risk of the auditor being sued because of association with an auditee. B) The risk that the auditor will provide an inappropriate opinion on financial statements that are, in fact, materially misstated. C) The overall risk that a material misstatement exists in the financial statements. D) The risk that auditors use audit procedures that are inappropriate. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-04 Understand the fundamental concepts that underlie financial statement audi AICPA : BB Critical Thinking AACSB : Analytical Thinking AICPA : FN Risk Analysis Topic : Fundamental Concepts in Conducting a Financial Statement Audit Gradable : automatic Accessibility : Screen Reader Compatible.