TEST BANK
i FOR AUDITING & ASSURANCE SERVICES: A
i i i i i i
SYSTEMATIC APPROACH 12TH EDITION BY
im i i i i
WILLIAM MESSIER, STEVEN GLOVER
im i mi mi
Chapter 0 m Answers Included ✅
m mi
1 12e
m
1) Whymdo mauditorsmoftenmusemamsamplingmapproachmto mevidencemgathering?
A) Auditorsm arem expertsm andm do m notm needm to m lookm atm muchm to m knowm whet
hermthemfinancialmstatementsmaremcorrectmormnot.
B) Auditorsm mustm balancem them costm ofm them auditm withm them needm form precis
ionmandm form somem typesm ofm evidence,m computerm datam analyticm approachesm can’tm b
em used.
C) Auditorsm mustm limitm theirm exposurem to m theirm auditeem to m maintainm independence.
D) Themauditor'smrelationshipmwithmthemauditeem ismgenerallymadversarial,mso mth
em auditor m willm notm havem accessm to m allm ofm them financialm informationm ofm them compan
y.
2) Whichmofmthemfollowingmstatementsmbestmdescribesmamrelationshipmbetween
m sample msize mandm other melements m ofmauditing?
A) Ifmmaterialitymincreases, mso mwillmthemsamplemsize.
B) Ifm them desiredm levelm ofm assurancem increases,m samplem sizesm canm bem smaller.
C) Ifmmaterialitymdecreases,msamplemsizemwillmneedmto mincrease.
D) Theremismno mrelationshipmbetweenmsamplemsizemandmmaterialitymormth
em desiredmlevelmofmassurance.
3) Whichm ofm them followingm statementsm aboutm them studym ofm auditingm ism NOT m true?
A) Themstudym ofm auditingm canm bem valuablem to m futurem accountantsm a
ndmbusinessm decisionm makersm whether m orm notm theym planm to m becomem audit
ors.
B) Themstudymofmauditingmfocusesmonmlearningm themanalyticalmandmlogicalmsk
illsmnecessarymto mevaluatem themrelevancemandmreliabilitymofminformation.
C) Themstudymofmauditingmfocusesmonmlearningm themrules,mtechniques,ma
ndmcomputationsm requiredmto manalyzemfinancialmstatementsmform making minves
1
,tmentmrecommendations.
D) Themstudymofmauditingmbeginsm withmthemunderstandingmofmamcoherentmlogi
calmframeworkmandmtechniquesmusefulmformgatheringmandmanalyzingmevidencemabout m
others’
2
,assertions.
4) Thembasicmdefinitionmofmauditingmessentiallymindicatesmthat,moverall,mauditingmismamprocessmto
3
, A) detectmfraud.
B) examinemindividualmtransactionsmso m thatmthem auditor mmaymcertifymasmto mthei
rm validity.
C) objectivelymobtainmandmevaluatemevidencemregardingmassertionsmmadem
bymanother mparty.
D) assurem them consistentm applicationm ofm correctm accountingm procedures.
5) Assurancemservicesmmaymimprovemallmofm themfollowingmexcept:
A) relevance.
B) credibility.
C) periodicity.
D) reliability.
6) Evidencemismreliablemifmit:
A) signalsm them truem statem ofm am managementm assertion.
B) appliesmto mthemperiodmbeingmaudited.
C) relatesm to m them auditm assertionm beingm tested.
D) ism sufficientm to m justifym am conclusion.
7) Whichm ofm them followingm bestm describesm them conceptm ofm auditm risk?
A) Themriskmofmthemauditor mbeingmsuedmbecausemofmassociationmwithmanmauditee.
B) Themriskmthatmthemauditor mwillmprovidemanminappropriate mopinionm
onmfinancialmstatementsm thatmare,m inmfact,m materiallym misstated.
C) Themoverallmriskmthatmammaterialmmisstatementmexistsminmthemfinancia
lmstatements.
D) Them riskm thatm auditorsm usem auditm proceduresm thatm arem inappropriate.
4
i FOR AUDITING & ASSURANCE SERVICES: A
i i i i i i
SYSTEMATIC APPROACH 12TH EDITION BY
im i i i i
WILLIAM MESSIER, STEVEN GLOVER
im i mi mi
Chapter 0 m Answers Included ✅
m mi
1 12e
m
1) Whymdo mauditorsmoftenmusemamsamplingmapproachmto mevidencemgathering?
A) Auditorsm arem expertsm andm do m notm needm to m lookm atm muchm to m knowm whet
hermthemfinancialmstatementsmaremcorrectmormnot.
B) Auditorsm mustm balancem them costm ofm them auditm withm them needm form precis
ionmandm form somem typesm ofm evidence,m computerm datam analyticm approachesm can’tm b
em used.
C) Auditorsm mustm limitm theirm exposurem to m theirm auditeem to m maintainm independence.
D) Themauditor'smrelationshipmwithmthemauditeem ismgenerallymadversarial,mso mth
em auditor m willm notm havem accessm to m allm ofm them financialm informationm ofm them compan
y.
2) Whichmofmthemfollowingmstatementsmbestmdescribesmamrelationshipmbetween
m sample msize mandm other melements m ofmauditing?
A) Ifmmaterialitymincreases, mso mwillmthemsamplemsize.
B) Ifm them desiredm levelm ofm assurancem increases,m samplem sizesm canm bem smaller.
C) Ifmmaterialitymdecreases,msamplemsizemwillmneedmto mincrease.
D) Theremismno mrelationshipmbetweenmsamplemsizemandmmaterialitymormth
em desiredmlevelmofmassurance.
3) Whichm ofm them followingm statementsm aboutm them studym ofm auditingm ism NOT m true?
A) Themstudym ofm auditingm canm bem valuablem to m futurem accountantsm a
ndmbusinessm decisionm makersm whether m orm notm theym planm to m becomem audit
ors.
B) Themstudymofmauditingmfocusesmonmlearningm themanalyticalmandmlogicalmsk
illsmnecessarymto mevaluatem themrelevancemandmreliabilitymofminformation.
C) Themstudymofmauditingmfocusesmonmlearningm themrules,mtechniques,ma
ndmcomputationsm requiredmto manalyzemfinancialmstatementsmform making minves
1
,tmentmrecommendations.
D) Themstudymofmauditingmbeginsm withmthemunderstandingmofmamcoherentmlogi
calmframeworkmandmtechniquesmusefulmformgatheringmandmanalyzingmevidencemabout m
others’
2
,assertions.
4) Thembasicmdefinitionmofmauditingmessentiallymindicatesmthat,moverall,mauditingmismamprocessmto
3
, A) detectmfraud.
B) examinemindividualmtransactionsmso m thatmthem auditor mmaymcertifymasmto mthei
rm validity.
C) objectivelymobtainmandmevaluatemevidencemregardingmassertionsmmadem
bymanother mparty.
D) assurem them consistentm applicationm ofm correctm accountingm procedures.
5) Assurancemservicesmmaymimprovemallmofm themfollowingmexcept:
A) relevance.
B) credibility.
C) periodicity.
D) reliability.
6) Evidencemismreliablemifmit:
A) signalsm them truem statem ofm am managementm assertion.
B) appliesmto mthemperiodmbeingmaudited.
C) relatesm to m them auditm assertionm beingm tested.
D) ism sufficientm to m justifym am conclusion.
7) Whichm ofm them followingm bestm describesm them conceptm ofm auditm risk?
A) Themriskmofmthemauditor mbeingmsuedmbecausemofmassociationmwithmanmauditee.
B) Themriskmthatmthemauditor mwillmprovidemanminappropriate mopinionm
onmfinancialmstatementsm thatmare,m inmfact,m materiallym misstated.
C) Themoverallmriskmthatmammaterialmmisstatementmexistsminmthemfinancia
lmstatements.
D) Them riskm thatm auditorsm usem auditm proceduresm thatm arem inappropriate.
4
