Solution Manual for Auditing and Assurance Services 11th Edition by Messier
An Introduction to Assurance and Financial Statement Auditing
|Learning Objectives||Review Questions||Multiple- |
EarthWear Mini-Cases (EWMC)
|LO 1-1: 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.||1||29||30|
|LO 1-2: 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.||2,3,4||13,14,20||24,25||29|
|LO 1-3: Understand the relationships among auditing, attestation, and assurance services.||5||15,16|
|LO 1-4: Know the basic definition of a financial statement audit.||5,6||13,14||25|
|LO 1-5: Understand three fundamental concepts that underlie financial statement auditing.||7||17,18||25|
|LO 1-6: Be able to understand why on most audit engagements an auditor tests only a sample of transactions that occurred.||8|
|LO 1-7: Be able to describe the basic financial statement auditing process and the phases in which an audit is carried out.||9, 10||17,19,20||26||EWMC |
|LO 1-8: Know what an audit report is and understand the nature of an unqualified report.||11||21,22,23||27,28|
|LO 1-9:Understand that the way audits are done is changing in exciting ways due to the application of technology, and audit data analytics in particular.|
|LO 1-10: Understand why auditing demands logic, reasoning, and resourcefulness.||12||30|
NOTE: References to auditing standards in the instructor manual follow a similar convention to that followed in the text: AICPA standards will be referenced by clarified AU section and PCAOB standards will be referenced by Auditing Standard (AS) number.
END OF CHAPTER MATERIALS COMPARISON CHART
When students enter the first introductory class, they seldom understand what assurance or auditing entails. Generally, they will not have read Chapter 1 before class, so it’s important to spend the time necessary during the first class to capture students’ attention and stimulate their interest in auditing.
After going over the class expectations, we spend the first part of class discussing and illustrating the demand for auditing and the role of auditing in society. If students are to be interested and excited to dig in and learn this daunting new material, they need to be convinced that it is important and useful. Thus, we also emphasize that the concepts underlying auditing are useful in many contexts other than auditing, including consulting and management.