TEST BANK for Auditing: A Practical Approach with
Data Analytics 2nd Edition by Laura Davis Wiley,
Raymond N. Johnson and Robyn Moroney ISBN-.
All Chapters 1-16 (Complete Download).
, Table of Contents
Chapter 1: Introduction and Overview of Audit and Assurance
Chapter 2: Professionalism and Professional Responsibilities
Chapter 3: Risk Assessment Part I: Audit Risk and Audit Strategy
Chapter 4: Risk Assessment Part II: Understanding the Client
Chapter 5: Audit Evidence
Chapter 6: Gaining an Understanding of the Client's System of Internal
Control
Chapter 7: Audit Data Analytics
Chapter 8: Risk Response: Performing Tests of Controls
Chapter 9: Risk Response: Performing Substantive Procedures
Chapter 10: Risk Response: Evaluating Audit Data Analytics and Audit
Sampling
Chapter 11: Auditing the Revenue Process
Chapter 12: Auditing the Purchasing and Payroll Processes
,Chapter 1
Introduction and Overview of Audit
and Assurance
Question Type: True or False
1. GAAP and IFRS are examples of applicable financial reporting framework.
A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Reporting, AACSB:
Communication, Learning Objective: LO1.1, Solution: The applicable financial reporting
framework refers to the set of standards used in preparing the historical financial statements,
such as GAAP, IFRS or a Federal Income Tax Basis of Accounting.
2. Review of financial forecasts falls under attestation services.
A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Measurement Analysis and
4
, Interpretation, AACSB: Ethics, Learning Objective: LO1.1, Solution: Attestation services (under
the umbrella of assurance services) include review of historical financial statements, review of
financial forecasts, and examination of internal control.
3. Within a U.S. context, the applicable financial reporting framework is typically Generally
Accepted Accounting Principles (GAAP).
A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Measurement Analysis and
Interpretation, AACSB: Ethics, Learning Objective: LO1.2, Solution: Within a U.S. context, the
applicable financial reporting framework is typically generally accepted accounting principles
(GAAP).
4. Private companies, or non-issuers, are not required by the U.S. government to have an
annual financial statement audit
A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Reporting, AACSB: Analytic,
Learning Objective: LO1.2, Solution: Private companies, or non-issuers, are not required by the
U.S. government to have an annual financial statement audit, but often other interested users,
such as a bank or lender, may request that a private company provide audited financial
statements.
5
Data Analytics 2nd Edition by Laura Davis Wiley,
Raymond N. Johnson and Robyn Moroney ISBN-.
All Chapters 1-16 (Complete Download).
, Table of Contents
Chapter 1: Introduction and Overview of Audit and Assurance
Chapter 2: Professionalism and Professional Responsibilities
Chapter 3: Risk Assessment Part I: Audit Risk and Audit Strategy
Chapter 4: Risk Assessment Part II: Understanding the Client
Chapter 5: Audit Evidence
Chapter 6: Gaining an Understanding of the Client's System of Internal
Control
Chapter 7: Audit Data Analytics
Chapter 8: Risk Response: Performing Tests of Controls
Chapter 9: Risk Response: Performing Substantive Procedures
Chapter 10: Risk Response: Evaluating Audit Data Analytics and Audit
Sampling
Chapter 11: Auditing the Revenue Process
Chapter 12: Auditing the Purchasing and Payroll Processes
,Chapter 1
Introduction and Overview of Audit
and Assurance
Question Type: True or False
1. GAAP and IFRS are examples of applicable financial reporting framework.
A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Reporting, AACSB:
Communication, Learning Objective: LO1.1, Solution: The applicable financial reporting
framework refers to the set of standards used in preparing the historical financial statements,
such as GAAP, IFRS or a Federal Income Tax Basis of Accounting.
2. Review of financial forecasts falls under attestation services.
A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Measurement Analysis and
4
, Interpretation, AACSB: Ethics, Learning Objective: LO1.1, Solution: Attestation services (under
the umbrella of assurance services) include review of historical financial statements, review of
financial forecasts, and examination of internal control.
3. Within a U.S. context, the applicable financial reporting framework is typically Generally
Accepted Accounting Principles (GAAP).
A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Measurement Analysis and
Interpretation, AACSB: Ethics, Learning Objective: LO1.2, Solution: Within a U.S. context, the
applicable financial reporting framework is typically generally accepted accounting principles
(GAAP).
4. Private companies, or non-issuers, are not required by the U.S. government to have an
annual financial statement audit
A. True
B. False
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Reporting, AACSB: Analytic,
Learning Objective: LO1.2, Solution: Private companies, or non-issuers, are not required by the
U.S. government to have an annual financial statement audit, but often other interested users,
such as a bank or lender, may request that a private company provide audited financial
statements.
5
