Test Bank For Auditing A Risk Based Approach to Conducting a Quality Audit 10Th Edition By Johnstone
6 views 0 purchase
Course
Auditing A Risk Based Approach - Test Bank
Institution
Auditing A Risk Based Approach - Test Bank
Chapter 1 - Auditing: Integral to the Economy
1. The need for assurance services arises because the interests of the users of information may be different from that of the interests of those responsible for providing information.
ANSWER:
POINTS:
NATIONAL STANDARDS: STATE STANDARDS: TOPICS:
a. ...
,Chapter 1 - Auditing: Integral to the Economy
1. The need for assurance services arises because the interests of the users of information may be different from
that of the interests of those responsible for providing information.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Demand for Assurances
2. A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
3. Auditors should conduct their work with an attitude of professional skepticism.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
4. A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to
Milton is a good example of the need for unbiased reporting.
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
5. An integrated audit requires the auditor to assess the effectiveness of internal controls.
a. True
b. False
ANSWER: True
Cengage Learning Testing, Powered by Cognero Page 1
,Chapter 1 - Auditing: Integral to the Economy
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
6. In all states, a CPA must have completed at least 150 hours of college semester hours to receive their license.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Professional and Regulatory Organizations
7. The Center for Audit Quality was started by the International Federation of Accountants.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Professional and Regulatory Organizations
8. The Center for Audit Quality has the primary authority to set auditing standards.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Professional and Regulatory Organizations
9. In an audit, management is considered the “client”.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
10. Auditing is the process of attesting to assertions about economic actions and events.
Cengage Learning Testing, Powered by Cognero Page 2
, Chapter 1 - Auditing: Integral to the Economy
a. True
b. False
ANSWER: True
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
11. Auditing is the process of verifying the accuracy of the financial statements.
a. True
b. False
ANSWER: False
POINTS: 1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
12. Management may have incentive to bias financial information, but the various users of the statements are
not likely to have conflicting interests in the financial information.
a. True
b. False
ANSWER: False
POINTS: 1
LEARNING OBJECTIVES: AUDT.JOHN.16.01-01 - LO: 01-01
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Overview of the External Auditing Profession
13. 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
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - AICPA BB-Critical thinking
TOPICS: Auditing Defined
14. A free market can only exist if there is sharing of perfectly reliable information.
a. True
b. False
ANSWER: False
Cengage Learning Testing, Powered by Cognero Page 3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $31.83. You're not tied to anything after your purchase.
