Test Bank For Auditing And Assurance Services, 18th Edition By Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan LATEST 2026

Test Bank For Auditing And Assurance Services,
18th Edition By Alvin A. Arens, Randal J. Elder,
Mark S. Beasley, Chris E. Hogan LATEST 2026
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Uditing And
Assurance Services, 16th Edition By Arens, Elder, Beasley,Hogan

, Auditing And Assurance Services, (Arens)
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
All Public Companies And Privately Held Companies With Assets Greater Than $500
Million ANSWER: C
Terms: Sarbanes-Oxley
Act Diff: Easy
Objective: Lo 1-1
Aacsb: Reflective Thinking
Skills Topic: Sox

2) Which Of The Following Is Considered
Audit Evidence? A)
Oral Statements Written Auditor
Made By Communications Observation
Management
Y N N

B)
Oral Statements Written Auditor
Made By Communications Observation
Management
N Y Y

C)
Oral Statements Written Auditor
Made By Communications Observation
Management
Y Y Y

D)
Oral Statements Written Auditor
Made By Communications Observation
Management
N N Y
ANSWER: C
Terms: Audit
Evidence Diff:
Moderate
Objective: Lo 1-1
Aacsb: Reflective Thinking Skills
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, 3) 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
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 Objective: Lo 1-1
Aacsb: Reflective Thinking Skills

4) The Criteria By Which An Auditor Evaluates The Information Under Audit
May Vary With The Information Being Audited.
A) True
False ANSWER:
A
Terms: Criteria Which An Auditor
Evaluates Information Diff: Easy
Objective: Lo 1-1
Aacsb: Reflective Thinking Skills

5) The Criteria Used By An External Auditor To Evaluate Published Financial
Statements Are Known As Generally Accepted Auditing Standards.
A) True
False ANSWER:
B
Terms: Criteria Used By External Auditor To Evaluate Published
Financial Statements Diff: Easy
Objective: Lo 1-1
Aacsb: Reflective Thinking Skills

6) The Sarbanes-Oxley Act Establishes Standards Related To The Audits Of
Privately Held Companies.
A) True
False ANSWER:
B
Terms: Sarbanes-Oxley
Act Diff: Easy
Objective: Lo 1-1
Aacsb: Reflective Thinking
Skills Topic: Sox




2

, 7) The Sarbanes-Oxley Act Is Widely Viewed As Having Ushered In Sweeping
Changes To Auditing And Financial Reporting.
A) True
False ANSWER:
A
Terms: Sarbanes-Oxley
Act Diff: Easy
Objective: Lo 1-1
Aacsb: Reflective Thinking
Skills Topic: Sox

8) An Auditor Must Be Competent And Have An Independent Mental Attitude.
A) True
False ANSWER:
A
Terms: Competence And Independent Mental
Attitude Diff: Easy
Objective: Lo 1-1
Aacsb: Reflective Thinking

Skills Learning Objective 1-2

1) Recording, Classifying, And Summarizing Economic Events In A Logical Manner
For The Purpose Of Providing Financial Information For Decision Making Is
Commonly Called:
A) Finance.
B) Auditing.
C) Accounting.
Economics. ANSWER: C
Terms: Recording, Classifying, And Summarizing
Economic Events Diff: Easy
Objective: Lo 1-2
Aacsb: Reflective Thinking Skills

2) An Accountant:
A) Must Possess Expertise In The Accumulation Of Audit Evidence.
B) Must Decide The Number And Types Of Items To Test.
C) Must Have An Understanding Of The Principles And Rules That Provide
The Basis For Preparing The Accounting Information.
Must Be A Cpa. ANSWER:
C
Terms: Distinguishes Auditors
From Accountants Diff: Moderate
Objective: Lo 1-2
Aacsb: Reflective Thinking Skills


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