Auditing and Assurance Services: An Integrated Approach (17th Edition) by Alvin A. Arens, Randal J. Elder, Mark S. Beasley & Chris E. Hogan – Complete Test Bank with Practice Questions and Solutions

Franklyn A Plus Pass




TEST BANK for Auditing and Assurance Services (an
integrated approach) 17th Edition by Chris E. Hogan
Alvin A. Arens, Randal J. Elder, Mark S. Beasley
All Chapters Included 1-24| Verified Q&As for Exam
Preparations| A+ GRADED


i a
t h
b u
m
Fr
an
kl
yn
e
A
pl
us
Pa




Page | 1
ss

, Franklyn A Plus Pass



Chapter 1 The Demand for Audit and Other Assurance Services

Learning Objective 1-1

1) The Sarbanes-Oxley Act applies to which of the following companies?

A) All companies

B) Privately held companies

C) Public companies

D) All public companies and privately held companies with assets greater than $500 million Correct
Answer: C a
Terms: Sarbanes-Oxley Act Diff: Easy

Objective: LO 1-1
i h
AACSB: Reflective thinking skills Topic: SOX
t
2) Which of the following is considered audit evidence? A)

Oral statements b u
made by management Written

Communications

Observation
Auditor m
Fr




Y N N
an




B)

Oral statements made by management Written Communications Auditor Observation
kl




N Y Y
yn




C)
e




Oral statements
A




made by management Written
pl




Communications Auditor
us




Observation

Y Y Y
Pa




Page | 2
ss

, Franklyn A Plus Pass



D)

Oral statements

made by management Written

Communications Auditor

Observation

N N Y

Correct Answer: C

Terms: Audit evidence Diff: Moderate Objective: LO 1-1
a
AACSB: Reflective thinking skills
i h
3) Evidence is paramount to audit and attestation engagements. List the four basic types of audit evidence.

Correct Answer: The four types of audit and attestation evidence include:
t u
1. Electronic and documentary data about transactions

2. Written and electronic communications with outsiders

3. Observations by the auditor
b
4.
m
Oral testimony of the auditee (client) Terms: Basic types of audit evidence Diff: Easy

Objective: LO 1-1
Fr




AACSB: Reflective thinking skills
an
kl




4) The criteria by which an auditor evaluates the information under audit may vary with the information
being audited.
yn




A) True
e




B) False Correct Answer: A
A




Terms: Criteria which an auditor evaluates information Diff: Easy
pl




Objective: LO 1-1
us




AACSB: Reflective thinking skills
Pa




Page | 3
ss

, Franklyn A Plus Pass



5) The criteria used by an external auditor to evaluate published financial statements are known as
generally accepted auditing standards.

A) True

B) False Correct Answer: B

Terms: Criteria used by external auditor to evaluate published financial statements Diff: Easy

Objective: LO 1-1

AACSB: Reflective thinking skills




A) True
i a
6) The Sarbanes-Oxley Act establishes standards related to the audits of privately held companies.



B) False Correct Answer: B

Terms: Sarbanes-Oxley Act Diff: Easy
t h
Objective: LO 1-1

AACSB: Reflective thinking skills Topic: SOX b u
7) The Sarbanes-Oxley Act is widely viewed as having ushered in sweeping changes to auditing and
m
financial reporting.

A) True
Fr




B) False Correct Answer: A
an




Terms: Sarbanes-Oxley Act Diff: Easy
kl




Objective: LO 1-1
yn




AACSB: Reflective thinking skills Topic: SOX
e




8) An auditor must be competent and have an independent mental attitude.
A




A) True
pl




B) False Correct Answer: A
us




Terms: Competence and independent mental attitude Diff: Easy
Pa




Page | 4
ss