TEST BANK
Auditing and Assurance Services, 16th edition
By Alvin A. Arens, Randal J. Elder
IM
PR
ES
SI
VE
G
R
AD
ES
, Table of Content
Part 1: The Auditing Profession
Chapter 1: The Demand for Audit and Other Assurance Services
Chapter 2: The CPA Profession
Chapter 3: Audit Reports
IM
Chapter 4: Professional Ethics
Chapter 5: Legal Liability
Part 2: The Audit Process
Chapter 6: Audit Responsibilities and Objectives
PR
Chapter 7: Audit Evidence
Chapter 8: Audit Planning and Materiality
Chapter 9: Assessing the Risk of Material Misstatement
Chapter 10: Assessing and Responding to Fraud Risks
ES
Chapter 11: Internal Control and Coso Framework
Chapter 12: Assessing Control Risk and Reporting on Internal Controls
Chapter 13: Overall Audit Strategy and Audit Program
Part 3: Application of the Audit Process to the Sales and Collection Cycle
Chapter 14: Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests
SI
of Transaction
Chapter 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions
Chapter 16: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable
VE
Chapter 17: Audit Sampling for Tests of Details of Balances
Part 4: Application of the Audit Process to Other Cycles
Chapter 18: Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests
of Transactions, and Accounts Payable
G
Chapter 19: Completing the Tests in the Acquisition and Payment Cycle: Verification of
Selected Accounts
R
Chapter 20: Audit of the Payroll and Personnel Cycle
Chapter 21: Audit of the Inventory and Warehouse Cycle
Chapter 22: Audit of the Capital Acquisition and Repayment Cycle
AD
Chapter 23: Audit of Cash and Financial Instruments
Part 5: Completing the Audit
Chapter 24: Completing the Audit Part 6: Other Assurance and Nonassurance Services
Chapter 25: Other Assurance Services
ES
Chapter 26: Internal and Governmental Financial Auditing and Operational Auditing
, KJHGFDS
TEST BANK FOR
Auditing and Assurance Services, 16e (Arens/Elder/Beasley)
Chapter 1 The Demand for Audit and Other Assurance Services
1.1 L earnin g Objective 1-1
IM
1) In the auditing process
A) the types and amounts of evidence remain constant from audit to audit.
B) the criteria for evaluating information will not vary depending on the information being
PR
audited.
C) the audit report communicates the auditor's findings to users.
D) records are gathered by the auditor to determine whether the audited information is stated in
accordance with SEC standards.
Answer: C
Terms: Audit process
ES
Diff: Moderate
Objective: LO 1-1
AACSB: Reflective thinking
2) Which of the following is considered audit evidence?
SI
A)
Oral statements Written Auditor
made by management Communications Observation
Y N N
VE
B)
Oral statements Written Auditor
made by management Communications Observation
N Y Y
G
C)
Oral statements Written Auditor
made by management Communications Observation
R
Y Y Y
D)
AD
Oral statements Written Auditor
made by management Communications Observation
N N Y
Answer: C
ES
Terms: Audit evidence
Diff: Easy
Objective: LO 1-1
AACSB: Reflective thinking
JHGFDS
, KJHGFDS
3) Which of the following can be used as a criteria for evaluating information being audited?
A) International Financial Reporting Standards (IFRS)
B) Generally Accepted Accounting Principles (GAAP)
C) Internal Revenue Code (IRC)
IM
D) all of the above
Answer: D
Terms: Criteria by which an auditor evaluates information
Diff: Moderate
Objective: LO 1-1
PR
AACSB: Reflective thinking
4) Evidence is paramount to audit and attestation engagements. List the four basic types of audit
evidence.
Answer: The four types of audit and attestation evidence include
1. Electronic and documentary data about transactions
ES
2. Written and electronic communications with outsiders
3. Observations by the auditor
4. Oral testimony of the auditee (client)
Terms: Basic types of audit evidence
Diff: Easy
SI
Objective: LO 1-1
AACSB: Reflective thinking
5) The criteria by which an auditor evaluates the information under audit may vary with the
VE
information being audited.
Answer: TRUE
Terms: Criteria by which an auditor evaluates information
Diff: Easy
Objective: LO 1-1
G
AACSB: Reflective thinking
6) One criteria used by an external auditor to evaluate published financial statements is known as
generally accepted auditing standards.
R
Answer: FALSE
Terms: Criteria used by external auditor to evaluate published financial statements
Diff: Easy
AD
Objective: LO 1-1
AACSB: Reflective thinking
7) Auditors strive to maintain a high level of independence to keep the confidence of users
relying on their reports.
ES
Answer: TRUE
Terms: Independence
Diff: Easy
Objective: LO 1-1
AACSB: Reflective thinking
JHGFDS
Auditing and Assurance Services, 16th edition
By Alvin A. Arens, Randal J. Elder
IM
PR
ES
SI
VE
G
R
AD
ES
, Table of Content
Part 1: The Auditing Profession
Chapter 1: The Demand for Audit and Other Assurance Services
Chapter 2: The CPA Profession
Chapter 3: Audit Reports
IM
Chapter 4: Professional Ethics
Chapter 5: Legal Liability
Part 2: The Audit Process
Chapter 6: Audit Responsibilities and Objectives
PR
Chapter 7: Audit Evidence
Chapter 8: Audit Planning and Materiality
Chapter 9: Assessing the Risk of Material Misstatement
Chapter 10: Assessing and Responding to Fraud Risks
ES
Chapter 11: Internal Control and Coso Framework
Chapter 12: Assessing Control Risk and Reporting on Internal Controls
Chapter 13: Overall Audit Strategy and Audit Program
Part 3: Application of the Audit Process to the Sales and Collection Cycle
Chapter 14: Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests
SI
of Transaction
Chapter 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions
Chapter 16: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable
VE
Chapter 17: Audit Sampling for Tests of Details of Balances
Part 4: Application of the Audit Process to Other Cycles
Chapter 18: Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests
of Transactions, and Accounts Payable
G
Chapter 19: Completing the Tests in the Acquisition and Payment Cycle: Verification of
Selected Accounts
R
Chapter 20: Audit of the Payroll and Personnel Cycle
Chapter 21: Audit of the Inventory and Warehouse Cycle
Chapter 22: Audit of the Capital Acquisition and Repayment Cycle
AD
Chapter 23: Audit of Cash and Financial Instruments
Part 5: Completing the Audit
Chapter 24: Completing the Audit Part 6: Other Assurance and Nonassurance Services
Chapter 25: Other Assurance Services
ES
Chapter 26: Internal and Governmental Financial Auditing and Operational Auditing
, KJHGFDS
TEST BANK FOR
Auditing and Assurance Services, 16e (Arens/Elder/Beasley)
Chapter 1 The Demand for Audit and Other Assurance Services
1.1 L earnin g Objective 1-1
IM
1) In the auditing process
A) the types and amounts of evidence remain constant from audit to audit.
B) the criteria for evaluating information will not vary depending on the information being
PR
audited.
C) the audit report communicates the auditor's findings to users.
D) records are gathered by the auditor to determine whether the audited information is stated in
accordance with SEC standards.
Answer: C
Terms: Audit process
ES
Diff: Moderate
Objective: LO 1-1
AACSB: Reflective thinking
2) Which of the following is considered audit evidence?
SI
A)
Oral statements Written Auditor
made by management Communications Observation
Y N N
VE
B)
Oral statements Written Auditor
made by management Communications Observation
N Y Y
G
C)
Oral statements Written Auditor
made by management Communications Observation
R
Y Y Y
D)
AD
Oral statements Written Auditor
made by management Communications Observation
N N Y
Answer: C
ES
Terms: Audit evidence
Diff: Easy
Objective: LO 1-1
AACSB: Reflective thinking
JHGFDS
, KJHGFDS
3) Which of the following can be used as a criteria for evaluating information being audited?
A) International Financial Reporting Standards (IFRS)
B) Generally Accepted Accounting Principles (GAAP)
C) Internal Revenue Code (IRC)
IM
D) all of the above
Answer: D
Terms: Criteria by which an auditor evaluates information
Diff: Moderate
Objective: LO 1-1
PR
AACSB: Reflective thinking
4) Evidence is paramount to audit and attestation engagements. List the four basic types of audit
evidence.
Answer: The four types of audit and attestation evidence include
1. Electronic and documentary data about transactions
ES
2. Written and electronic communications with outsiders
3. Observations by the auditor
4. Oral testimony of the auditee (client)
Terms: Basic types of audit evidence
Diff: Easy
SI
Objective: LO 1-1
AACSB: Reflective thinking
5) The criteria by which an auditor evaluates the information under audit may vary with the
VE
information being audited.
Answer: TRUE
Terms: Criteria by which an auditor evaluates information
Diff: Easy
Objective: LO 1-1
G
AACSB: Reflective thinking
6) One criteria used by an external auditor to evaluate published financial statements is known as
generally accepted auditing standards.
R
Answer: FALSE
Terms: Criteria used by external auditor to evaluate published financial statements
Diff: Easy
AD
Objective: LO 1-1
AACSB: Reflective thinking
7) Auditors strive to maintain a high level of independence to keep the confidence of users
relying on their reports.
ES
Answer: TRUE
Terms: Independence
Diff: Easy
Objective: LO 1-1
AACSB: Reflective thinking
JHGFDS
