Test Bank for Auditing and Assurance Services, 16th Edition by Alvin Arens, Randal Elder, Mark Beasley, Chapter 1-26 | All Chapters

TEST BANK
Auditing and Assurance Services, 16th edition
By Alvin A. Arens, Randal J. Elder
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, 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
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Chapter 4: Professional Ethics
Chapter 5: Legal Liability
Part 2: The Audit Process
Chapter 6: Audit Responsibilities and Objectives
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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
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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
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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
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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
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Chapter 19: Completing the Tests in the Acquisition and Payment Cycle: Verification of
Selected Accounts
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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
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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
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Chapter 26: Internal and Governmental Financial Auditing and Operational Auditing

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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
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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
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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
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Diff: Moderate
Objective: LO 1-1
AACSB: Reflective thinking

2) Which of the following is considered audit evidence?
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A)
Oral statements Written Auditor
made by management Communications Observation
Y N N
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B)
Oral statements Written Auditor
made by management Communications Observation
N Y Y
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C)
Oral statements Written Auditor
made by management Communications Observation
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Y Y Y

D)
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Oral statements Written Auditor
made by management Communications Observation
N N Y

Answer: C
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Terms: Audit evidence
Diff: Easy
Objective: LO 1-1
AACSB: Reflective thinking




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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)
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D) all of the above
Answer: D
Terms: Criteria by which an auditor evaluates information
Diff: Moderate
Objective: LO 1-1
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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
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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
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Objective: LO 1-1
AACSB: Reflective thinking

5) The criteria by which an auditor evaluates the information under audit may vary with the
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information being audited.
Answer: TRUE
Terms: Criteria by which an auditor evaluates information
Diff: Easy
Objective: LO 1-1
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AACSB: Reflective thinking

6) One criteria used by an external auditor to evaluate published financial statements is known as
generally accepted auditing standards.
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Answer: FALSE
Terms: Criteria used by external auditor to evaluate published financial statements
Diff: Easy
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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.
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Answer: TRUE
Terms: Independence
Diff: Easy
Objective: LO 1-1
AACSB: Reflective thinking




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