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Copyright Cengage Learning. Powered by Cognero. Page 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.

• True
• 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

• A financial statement audit is a systematic process of objectively obtaining and evaluating evidence.
• True
• 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

• 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.

• True
• 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

DATE MODIFIED: 5/26/2023 5:02 AM

• An integ audit requires the auditor to assess the effectiveness of internal controls.

(Auditing A Risk Based-Approach, 12e Karla Zehms, Audrey Gramling, Larry Rittenberg) ( Edition 2023-24, , ) Chapter 01 1 / 4

Chapter 01

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• True
• 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

• Auditors obtain and evaluate evidence regarding assertions about economic actions and events to verify the

accuracy of those assertions.

• True
• 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

• Auditing is the process of verifying and assuring the complete accuracy of the financial statements.
• True
• 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

DATE MODIFIED: 5/26/2023 5:05 AM

• 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.

• True 2 / 4

Chapter 01

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• 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

• Auditing exists because users need unbiased information on which to assess management performance and

make economic decisions.

• True
• 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

• Users rely on the auditors' independent assessment of financial statement presentation because few users

have direct knowledge of the company's operations.

• True
• 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 5:07 AM

DATE MODIFIED: 5/26/2023 5:08 AM

• If the auditor has no reservations about management’s financial statements, then the auditor will issue a

qualified opinion.

• True 3 / 4

Chapter 01

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• 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

• Independence is often referred to as the cornerstone of the auditing profession.
• True
• 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

• Auditors generally need quantitative and mathematical skills more than they need communication and

leadership skills.

• True
• 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 5:11 AM

DATE MODIFIED: 5/26/2023 5:12 AM

• The overall objective of an audit is to guarantee the financial statements are free of misstatement.
• True
• False

ANSWER: False

• / 4