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Auditing & Assurance Services 7th Edition by Timothy Louwers Test bank

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AACSB: Analytic
AICPA: BB Legal
AICPA: FN Risk Analysis
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-04 Define professional skepticism and explain its key characteristics.
Source: AICPA
Topic: Professional Skepticism
 
 
39. Which of the following best describes assurance services? 
 


 
A.  Independent professional services that report on the client's financial statements
 
B.  Independent professional services that improve the quality of information for decision makers
 
C.  Independent professional services that report on specific written management assertions
 
D.  Independent professional services that improve the operations of the client
 
AACSB: Analytic
AICPA: BB Industry
AICPA: FN Research
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-02 Define and contrast financial statement auditing; attestation; and assurance services.
Source: Original
Topic: Auditing, Attestation, and Assurance Services
 
 
40. Which of the following is not a PCAOB assertion about inventory related to presentation and disclosure? 
 


 
A.  Inventory is properly classified as a current asset on the balance sheet.
 
B.  Inventory is properly stated at its cost on the balance sheet.
 
C.  Major inventory categories and their valuation bases are adequately disclosed in notes.
 
D.  All of these are PCAOB presentation and disclosure assertions about inventory
 
AACSB: Analytic
AICPA: BB Legal
AICPA: FN Research
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-03 Describe and define the assertions that management makes about the recognition; measurement; presentation; and disclosure of the financial statements and explain why auditors use them as the focal point of the audit.

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