,TESTBANK for Auditing A Risk Based-Approach
12th Edition by Karla M. Zehms
Notes
1- All Chapters are step by step.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
Our website:
testbanks-store.com
,Chapter 01
1. The need for independent assurance arises because the interests of the users of information
may be different from the interests of those responsible for providing information.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 4:48 AM
DATE MODIFIED: 5/26/2023 4:49 AM
2. A financial statement audit is a systematic process of objectively obtaining and evaluating
evidence.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 4:59 AM
DATE MODIFIED: 5/26/2023 5:00 AM
3. A bank using Milton Company's financial statements to evaluate Milton’s loan application is
an example of a user’s need for unbiased reporting.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:01 AM
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 01
DATE MODIFIED: 5/26/2023 5:02 AM
4. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:02 AM
DATE MODIFIED: 5/26/2023 5:03 AM
5. Auditors obtain and evaluate evidence regarding assertions about economic actions and events
to verify the accuracy of those assertions.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:03 AM
DATE MODIFIED: 5/26/2023 5:04 AM
6. Auditing is the process of verifying and assuring the complete accuracy of the financial
statements.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:04 AM
Copyright Cengage Learning. Powered by Cognero. Page 2
,Chapter 01
DATE MODIFIED: 5/26/2023 5:05 AM
7. Management may have incentives to present biased financial information, but the various
users of the statements are likely to have the same interest in the financial information.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:05 AM
DATE MODIFIED: 5/26/2023 5:06 AM
8. Auditing exists because users need unbiased information on which to assess management
performance and make economic decisions.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:06 AM
DATE MODIFIED: 5/26/2023 5:07 AM
9. Users rely on the auditors' independent assessment of financial statement presentation
because few users have direct knowledge of the company's operations.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
Copyright Cengage Learning. Powered by Cognero. Page 3
,Chapter 01
DATE CREATED: 5/26/2023 5:07 AM
DATE MODIFIED: 5/26/2023 5:08 AM
10. If the auditor has no reservations about management’s financial statements, then the auditor
will issue a qualified opinion.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:08 AM
DATE MODIFIED: 5/26/2023 5:09 AM
11. Independence is often referred to as the cornerstone of the auditing profession.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:09 AM
DATE MODIFIED: 5/26/2023 5:11 AM
12. Auditors generally need quantitative and mathematical skills more than they need
communication and leadership skills.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
Copyright Cengage Learning. Powered by Cognero. Page 4
,Chapter 01
DATE CREATED: 5/26/2023 5:11 AM
DATE MODIFIED: 5/26/2023 5:12 AM
13. The overall objective of an audit is to guarantee the financial statements are free of
misstatement.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:13 AM
DATE MODIFIED: 5/26/2023 5:15 AM
14. The foundation for the audit opinion formulation process relies on obtaining evidence to
support the auditor’s opinion.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:15 AM
DATE MODIFIED: 5/26/2023 5:16 AM
15. Complex transactions, information, and processing systems provide an opportunity for
management to mislead users of financial statements.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
Copyright Cengage Learning. Powered by Cognero. Page 5
,Chapter 01
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:16 AM
DATE MODIFIED: 5/26/2023 5:17 AM
16. Users of audited financial statements include a company’s bondholders but not its
stockholders, who are the owners of the company.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:17 AM
DATE MODIFIED: 5/26/2023 5:18 AM
17. A key responsibility of the internal audit function is to provide assurance on the reliability of
financial information reported to external users of audited financial statements.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:18 AM
DATE MODIFIED: 5/26/2023 5:18 AM
18. The audit committee oversees both the internal and external auditors.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
Copyright Cengage Learning. Powered by Cognero. Page 6
,Chapter 01
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:19 AM
DATE MODIFIED: 5/26/2023 5:20 AM
19. A CPA is a certified public accountant who is licensed by a state board of accountancy.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:20 AM
DATE MODIFIED: 5/26/2023 5:20 AM
20. Internal controls are the responsibility of management.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:21 AM
DATE MODIFIED: 5/26/2023 5:21 AM
21. Audit staff performing audit work must be appropriately supervised by partners and
managers.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
Copyright Cengage Learning. Powered by Cognero. Page 7
, Chapter 01
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:22 AM
DATE MODIFIED: 5/26/2023 5:22 AM
22. An auditor who has reservations about the effectiveness of a client company’s internal
controls would issue an adverse opinion on internal controls.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:22 AM
DATE MODIFIED: 5/26/2023 5:23 AM
23. Audit firm culture is one of the primary drivers of audit quality.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.02 - Explain audit quality and its elements in relation to
the Financial Reporting Council’s Audit Quality Framework
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:23 AM
DATE MODIFIED: 5/26/2023 5:25 AM
24. Effective audit processes, by themselves, are sufficient to achieve audit quality.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.02 - Explain audit quality and its elements in relation to
the Financial Reporting Council’s Audit Quality Framework
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:25 AM
Copyright Cengage Learning. Powered by Cognero. Page 8
12th Edition by Karla M. Zehms
Notes
1- All Chapters are step by step.
2- We have shown you 10 pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
Our website:
testbanks-store.com
,Chapter 01
1. The need for independent assurance arises because the interests of the users of information
may be different from the interests of those responsible for providing information.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 4:48 AM
DATE MODIFIED: 5/26/2023 4:49 AM
2. A financial statement audit is a systematic process of objectively obtaining and evaluating
evidence.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 4:59 AM
DATE MODIFIED: 5/26/2023 5:00 AM
3. A bank using Milton Company's financial statements to evaluate Milton’s loan application is
an example of a user’s need for unbiased reporting.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:01 AM
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 01
DATE MODIFIED: 5/26/2023 5:02 AM
4. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:02 AM
DATE MODIFIED: 5/26/2023 5:03 AM
5. Auditors obtain and evaluate evidence regarding assertions about economic actions and events
to verify the accuracy of those assertions.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:03 AM
DATE MODIFIED: 5/26/2023 5:04 AM
6. Auditing is the process of verifying and assuring the complete accuracy of the financial
statements.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:04 AM
Copyright Cengage Learning. Powered by Cognero. Page 2
,Chapter 01
DATE MODIFIED: 5/26/2023 5:05 AM
7. Management may have incentives to present biased financial information, but the various
users of the statements are likely to have the same interest in the financial information.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:05 AM
DATE MODIFIED: 5/26/2023 5:06 AM
8. Auditing exists because users need unbiased information on which to assess management
performance and make economic decisions.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:06 AM
DATE MODIFIED: 5/26/2023 5:07 AM
9. Users rely on the auditors' independent assessment of financial statement presentation
because few users have direct knowledge of the company's operations.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
Copyright Cengage Learning. Powered by Cognero. Page 3
,Chapter 01
DATE CREATED: 5/26/2023 5:07 AM
DATE MODIFIED: 5/26/2023 5:08 AM
10. If the auditor has no reservations about management’s financial statements, then the auditor
will issue a qualified opinion.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:08 AM
DATE MODIFIED: 5/26/2023 5:09 AM
11. Independence is often referred to as the cornerstone of the auditing profession.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:09 AM
DATE MODIFIED: 5/26/2023 5:11 AM
12. Auditors generally need quantitative and mathematical skills more than they need
communication and leadership skills.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
Copyright Cengage Learning. Powered by Cognero. Page 4
,Chapter 01
DATE CREATED: 5/26/2023 5:11 AM
DATE MODIFIED: 5/26/2023 5:12 AM
13. The overall objective of an audit is to guarantee the financial statements are free of
misstatement.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:13 AM
DATE MODIFIED: 5/26/2023 5:15 AM
14. The foundation for the audit opinion formulation process relies on obtaining evidence to
support the auditor’s opinion.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:15 AM
DATE MODIFIED: 5/26/2023 5:16 AM
15. Complex transactions, information, and processing systems provide an opportunity for
management to mislead users of financial statements.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
Copyright Cengage Learning. Powered by Cognero. Page 5
,Chapter 01
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:16 AM
DATE MODIFIED: 5/26/2023 5:17 AM
16. Users of audited financial statements include a company’s bondholders but not its
stockholders, who are the owners of the company.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:17 AM
DATE MODIFIED: 5/26/2023 5:18 AM
17. A key responsibility of the internal audit function is to provide assurance on the reliability of
financial information reported to external users of audited financial statements.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:18 AM
DATE MODIFIED: 5/26/2023 5:18 AM
18. The audit committee oversees both the internal and external auditors.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
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,Chapter 01
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:19 AM
DATE MODIFIED: 5/26/2023 5:20 AM
19. A CPA is a certified public accountant who is licensed by a state board of accountancy.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:20 AM
DATE MODIFIED: 5/26/2023 5:20 AM
20. Internal controls are the responsibility of management.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:21 AM
DATE MODIFIED: 5/26/2023 5:21 AM
21. Audit staff performing audit work must be appropriately supervised by partners and
managers.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
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, Chapter 01
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:22 AM
DATE MODIFIED: 5/26/2023 5:22 AM
22. An auditor who has reservations about the effectiveness of a client company’s internal
controls would issue an adverse opinion on internal controls.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.01 - Define financial statement auditing in relation to
decision makers’ demands for reliable financial and internal control
information
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:22 AM
DATE MODIFIED: 5/26/2023 5:23 AM
23. Audit firm culture is one of the primary drivers of audit quality.
a. True
b. False
ANSWER: True
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.02 - Explain audit quality and its elements in relation to
the Financial Reporting Council’s Audit Quality Framework
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:23 AM
DATE MODIFIED: 5/26/2023 5:25 AM
24. Effective audit processes, by themselves, are sufficient to achieve audit quality.
a. True
b. False
ANSWER: False
POINTS: 1
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:AUD.ZEHMS.24.01.02 - Explain audit quality and its elements in relation to
the Financial Reporting Council’s Audit Quality Framework
NATIONAL STANDARDS: United States - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
DATE CREATED: 5/26/2023 5:25 AM
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