CHAPTER 1 Introduction and Overview of Audit and Assurance Learning Objectives 1. Differentiate among assurance, attestation, and auditing services. 2. Describe the different types of assurance services. 3. Explain the demand for audit and assurance services. 4. Discuss the different roles of the financial statement preparer and the auditor. 5. Identify the roles of different regulators and organizations that affect the audit profession. 6. Explain the concepts of reasonable assurance, materiality, and the nature of an unqualified/unmodified report on the audit of financial statements. 7. Explain the concept of reasonable assurance and the nature of an unqualified report on internal controls over financial reporting. 8. Discuss the audit expectation gap. ANSWERS TO MULTIPLE-CHOICE QUESTIONS 1. C LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA AC: Risk Assessment, Analysis and Management, Section: Assurance, Attestation, and Audit Services 2. A LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA AC: Risk Assessment, Analysis and Management, Section: Different Assurance Services 3. B LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA AC: Risk Assessment, Analysis and Management, Section: Different Assurance Services 4. C LO 2, BT: C, Difficulty: Medium, TOT: 2 min., AACSB: None, AICPA AC: Risk Assessment, Analysis and Management, Section: Different Assurance Services 5. C LO 3, BT: C, Difficulty: Medium, TOT: 2 min., AACSB: None, AICPA AC: Risk Assessment, Analysis and Management,