Test Bank for Auditing Assurance Services by william Messier 11th edition |Complete

,Auditingn&nAssurancenServices:nAnSystematicnApproach,n11en(Messier)nChapte
rn1n AnnIntroductionntonAssurancenandnFinancialnStatementnAuditing

1) Auditingnfocusesnonnrules,ntechniques,nandncomputationsnrequiredntonpreparenandnanalyzenf
inancialninformation.

Answer:nFALSEn
Difficulty:n1nEasy
Topic:n ThenImportancenfornStudyingnAuditing
LearningnObjective:n01-
01nUnderstandnwhynstudyingnauditingncannbenvaluablentonyounwhethernornnotnyounplanntonbecomenanna
uditor,nandnwhynitnisndifferentnfromnstudyingnaccounting.
Bloom's:nRemembernAAC
SB:n Communication
AICPA:n BBnLegal;nFNnDecisionnMaking

2) Decisionnmakersndemandnreliableninformationnthatnisnprovidednbynaccountants.

Answer:nTRUEnD
ifficulty:n1nEasy
Topic:n ThenDemandnfornAuditingnandnAssurance
LearningnObjective:n 01-
02nUnderstandnthendemandnfornauditingnandnbenablentonexplainnthendesiredncharacteristicsnofnaudito
rsnandnauditnservicesnthroughnannanalogyntonanhouseninspectornandnanhouseninspectionnservice.
Bloom's:nUnderstandnAA
CSB:n Communication
AICPA:n FNnDecisionnMaking;nBBnIndustry

3) Informationnasymmetrynseldomnoccurs.

Answer:nFALSEnDiff
iculty:n2nMedium
Topic:n ThenDemandnfornAuditingnandnAssurance
LearningnObjective:n 01-
02nUnderstandnthendemandnfornauditingnandnbenablentonexplainnthendesiredncharacteristicsnofnaudito
rsnandnauditnservicesnthroughnannanalogyntonanhouseninspectornandnanhouseninspectionnservice.
Bloom's:n Apply
AACSB:n Communication
AICPA:n BBnIndustry;nFNnReporting




1
Copyrightn2019n©nMcGraw-
HillnEducation.nAllnrightsnreserved.nNonreproductionnorndistributionnwithoutnthenpriornwrittennconsentnofnMcGraw-
HillnEducation.

,4) Conflictsnofninterestnoftennoccurnbetweennabsenteenownersnandnmanagers.

Answer:nTRUEnDiffi
culty:n2nMedium
Topic:n ThenDemandnfornAuditingnandnAssurance
LearningnObjective:n 01-
02nUnderstandnthendemandnfornauditingnandnbenablentonexplainnthendesiredncharacteristicsnofnaudito
rsnandnauditnservicesnthroughnannanalogyntonanhouseninspectornandnanhouseninspectionnservice.
Bloom's:n Apply
AACSB:n Communication
AICPA:n BBnIndustry;nFNnReporting

5) Auditingnservicesnandnattestationnservicesnarenthensame.

Answer:nFALSEn
Difficulty:n1nEasy
Topic:n Auditing,nAttest,nandnAssurancenServicesnDefined
LearningnObjective:n 01-
03nUnderstandnthenrelationshipsnamongnauditing,nattestation,nandnassurancenservices.
Bloom's:nUnderstandnAA
CSB:n Communication
AICPA:n BBnIndustry;nFNnReporting

6) Auditingnisnantypenofnattestnservice.

Answer:nTRUEnD
ifficulty:n1nEasy
Topic:n Auditing,nAttest,nandnAssurancenServicesnDefined
LearningnObjective:n 01-
03nUnderstandnthenrelationshipsnamongnauditing,nattestation,nandnassurancenservices.;n01-
04nKnownthenbasicndefinitionnofnanfinancialnstatementnaudit.
Bloom's:nUnderstandnAA
CSB:n Communication
AICPA:n BBnIndustry;nFNnReporting

7) Testingnallntransactionsnthatnoccurrednduringnthenperiodnisncostnprohibitive.

Answer:n TRUEnDifficult
y:n2nMediumnTopic:n Then
AuditnProcess
LearningnObjective:n 01-
06nBenablentonexplainnwhynonnmostnauditnengagementsnannauditorntestsnonlynansamplenofntransaction
snthatnoccurred.
Bloom's:n Apply
AACSB:n Communication
AICPA:n FNnDecisionnMaking;nBBnCriticalnThinking
2
Copyrightn2019n©nMcGraw-
HillnEducation.nAllnrightsnreserved.nNonreproductionnorndistributionnwithoutnthenpriornwrittennconsentnofnMcGraw-
HillnEducation.

, 8) Whyndonauditorsngenerallynusenansamplingnapproachntonevidencengathering?
A) Auditorsnarenexpertsnandndonnotnneedntonlooknatnmuchntonknownwhethernthenfinancialnst
atementsnarencorrectnornnot.
B) Auditorsnmustnbalancenthencostnofnthenauditnwithnthenneednfornprecision.
C) Auditorsnmustnlimitntheirnexposurentontheirnauditeentonmaintainnindependence.
D) Thenauditor'snrelationshipnwithnthenauditeenisngenerallynadversarial,nsonthenauditornwillnnotnh
avenaccessntonallnofnthenfinancialninformationnofnthencompany.

Answer:nBnDiffic
ulty:n1nEasy
Topic:nThenAuditnProcess
LearningnObjective:n 01-
06nBenablentonexplainnwhynonnmostnauditnengagementsnannauditorntestsnonlynansamplenofntransaction
snthatnoccurred.
Bloom's:nUnderstandnAA
CSB:n Communication
AICPA:n FNnDecisionnMaking;nBBnIndustry

9) Whichnofnthenfollowingnstatementsnbestndescribesnanrelationshipnbetweennsamplensizenandnotherne
lementsnofnauditing?
A) Ifnmaterialitynincreases,nsonwillnthensamplensize.
B) Ifnthendesirednlevelnofnassurancenincreases,nsamplensizesncannbensmaller.
C) Ifnmaterialityndecreases,nsamplensizenwillnneedntonincrease.
D) Therenisnnonrelationshipnbetweennsamplensizenandnmaterialitynornthendesirednlevelnofnassurance.

Answer:n CnDifficult
y:n2nMedium
Topic:nThenAuditnProcess
LearningnObjective:n 01-
06nBenablentonexplainnwhynonnmostnauditnengagementsnannauditorntestsnonlynansamplenofntransaction
snthatnoccurred.
Bloom's:n Apply
AACSB:n AnalyticalnThinking
AICPA:n BBnCriticalnThinking;nFNnRisknAnalysis




3
Copyrightn2019n©nMcGraw-
HillnEducation.nAllnrightsnreserved.nNonreproductionnorndistributionnwithoutnthenpriornwrittennconsentnofnMcGraw-
HillnEducation.