100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 11th Edition By William Messier Jr, Steven Glover || All Verified Chapters (1 - 21) |Newest Version 2024 A+$12.99
Add to cart
Auditing & Assurance Services A Systematic 11th Ed
Auditing & Assurance Services A Systematic 11th Ed
Exam (elaborations)
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 11th Edition By William Messier Jr, Steven Glover || All Verified Chapters (1 - 21) |Newest Version 2024 A+
12 views 0 purchase
Course
Auditing & Assurance Services A Systematic 11th Ed
Institution
Auditing & Assurance Services A Systematic 11th Ed
Book
Auditing & Assurance Services
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 11th Edition By William Messier Jr, Steven Glover || All Verified Chapters (1 - 21) |Newest Version 2024 A+
Auditing & Assurance Services: A Systematic Approach, 11e (Messier)
Chapter 1 An Introduction to Assurance and Financial ...
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 12th Edition Chapters 1 - 21 Complete
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 12th Edition By William Messier Jr, Steven Glover
TEST BANK For Auditing & Assurance Services: A Systematic Approach, 11th Edition By William Messier Jr, Steven Glover
All for this textbook (36)
Written for
Auditing & Assurance Services A Systematic 11th Ed
All documents for this subject (1)
Seller
Follow
TestsBanks
Reviews received
Content preview
Auditing & Assurance Services: A Systematic Approach, 11e (Messier)
Chapter 1 An Introduction to Assurance and Financial Statement Auditing
1) Auditing focuses on rules, techniques, and computations required to prepare and analyze
financial information.
Answer: FALSE
Difficulty: 1 Easy
Topic: The Importance for Studying Auditing
Learning Objective: 01-01 Understand why studying auditing can be valuable to you whether or
not you plan to become an auditor, and why it is different from studying accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Legal; FN Decision Making
2) Decision makers demand reliable information that is provided by accountants.
Answer: TRUE
Difficulty: 1 Easy
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
desired characteristics of auditors and audit services through an analogy to a house inspector and
a house inspection service.
Bloom's: Understand
AACSB: Communication
AICPA: FN Decision Making; BB Industry
3) Information asymmetry seldom occurs.
Answer: FALSE
Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
desired characteristics of auditors and audit services through an analogy to a house inspector and
a house inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
,4) Conflicts of interest often occur between absentee owners and managers.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Demand for Auditing and Assurance
Learning Objective: 01-02 Understand the demand for auditing and be able to explain the
desired characteristics of auditors and audit services through an analogy to a house inspector and
a house inspection service.
Bloom's: Apply
AACSB: Communication
AICPA: BB Industry; FN Reporting
5) Auditing services and attestation services are the same.
Answer: FALSE
Difficulty: 1 Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and
assurance services.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
6) Auditing is a type of attest service.
Answer: TRUE
Difficulty: 1 Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and
assurance services.; 01-04 Know the basic definition of a financial statement audit.
Bloom's: Understand
AACSB: Communication
AICPA: BB Industry; FN Reporting
7) Testing all transactions that occurred during the period is cost prohibitive.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Audit Process
Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
only a sample of transactions that occurred.
Bloom's: Apply
AACSB: Communication
AICPA: FN Decision Making; BB Critical Thinking
,8) Why do auditors generally use a sampling approach to evidence gathering?
A) Auditors are experts and do not need to look at much to know whether the financial
statements are correct or not.
B) Auditors must balance the cost of the audit with the need for precision.
C) Auditors must limit their exposure to their auditee to maintain independence.
D) The auditor's relationship with the auditee is generally adversarial, so the auditor will not
have access to all of the financial information of the company.
Answer: B
Difficulty: 1 Easy
Topic: The Audit Process
Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
only a sample of transactions that occurred.
Bloom's: Understand
AACSB: Communication
AICPA: FN Decision Making; BB Industry
9) Which of the following statements best describes a relationship between sample size and other
elements of auditing?
A) If materiality increases, so will the sample size.
B) If the desired level of assurance increases, sample sizes can be smaller.
C) If materiality decreases, sample size will need to increase.
D) There is no relationship between sample size and materiality or the desired level of assurance.
Answer: C
Difficulty: 2 Medium
Topic: The Audit Process
Learning Objective: 01-06 Be able to explain why on most audit engagements an auditor tests
only a sample of transactions that occurred.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Risk Analysis
, 10) Which of the following statements about the study of auditing is NOT true?
A) The study of auditing can be valuable to future accountants and business decision makers
whether or not they plan to become auditors.
B) The study of auditing focuses on learning the analytical and logical skills necessary to
evaluate the relevance and reliability of information.
C) The study of auditing focuses on learning the rules, techniques, and computations required to
analyze financial statements.
D) The study of auditing begins with the understanding of a coherent logical framework and
techniques useful for gathering and analyzing evidence about others' assertions.
Answer: C
Difficulty: 2 Medium
Topic: The Importance for Studying Auditing
Learning Objective: 01-01 Understand why studying auditing can be valuable to you whether or
not you plan to become an auditor, and why it is different from studying accounting.
Bloom's: Analyze
AACSB: Communication
AICPA: FN Decision Making; BB Industry
11) The basic definition of auditing states it is a process to:
A) detect fraud.
B) examine individual transactions so that the auditor may certify as to their validity.
C) objectively obtain and evaluate evidence regarding assertions.
D) assure the consistent application of correct accounting procedures.
Answer: C
Difficulty: 1 Easy
Topic: Auditing, Attest, and Assurance Services Defined
Learning Objective: 01-03 Understand the relationships among auditing, attestation, and
assurance services.; 01-04 Know the basic definition of a financial statement audit.
Bloom's: Remember
AACSB: Communication
AICPA: FN Reporting; BB Critical Thinking
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 TestsBanks. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
