Test Bank for Auditing the art and science of assurance engagements 12th Canadian Edition by Alvin A. Arens All Chapters 1-20 Covered

, Test Bank
Auditing the art and science of assurance engagements
12th Canadian Edition by Alvin A. Arens
All Chapters 1-20 Covered




Auditing,b12eb(Arens)
Chapterb1b b ThebDemandbforbanbAuditingbandbAssurancebProfession

1.1 Identifybthebcomponentsbofbanbauditbandbexplainbwhybtherebisbabdemandbforbaudits

1) Whichbofbthebfollowingbillustratesbthebdefinitionbofbauditingbwithbrespectbtobthebevidenceb
analysisbprocess?
A) accumulationbandbevaluationbofbevidencebaboutbbalancebsheetbaccounts
B) learningbaboutbdifferentbtypesbofbcomputingbtechnology,bsuchbasbmainframes
C) writingbanboperationalbauditbreportbthatbisbtailoredbtobthebclient'sbsituation
D) makingbsurebthatbthebauditorbisbcompetentbandbunderstandsbevidencebgatherin
gbAnswer:b A
Diff:b1 Type:bMC PagebRef:b5
LearningbObj.:b 1-
1b Identifybthebcomponentsbofbanbauditbandbexplainbwhybtherebisbabdemandbforbaudits

2) Auditingbshouldbbebdonebbybabqualified
A) charteredbaccountant.
B) certifiedbmanagementbaccountant.
C) competentbandbindependentbperson.
D) professionalbaccountan
t.bAnswer:b C
Diff:b2 Type:bMC PagebRef:b5
LearningbObj.:b 1-
1b Identifybthebcomponentsbofbanbauditbandbexplainbwhybtherebisbabdemandbforbaudits

3) Whichbofbthebfollowingbillustratesbthebdefinitionbofbauditingbwithbrespectbtobthebreportingb
process?
A) accumulationbandbevaluationbofbevidencebaboutbbalancebsheetbaccounts
B) reportingbonbthebdegreebofbcorrespondencebbetweenbfinancialbstatementsbandbASPE
C) writingbanboperationalbauditbreportbthatbisbtailoredbtobthebclient'sbsituation
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©b2013bPearsonbCanadabInc.

,D) makingbsurebthatbthebauditorbisbcompetentbandbunderstandsbevidencebgatherin
gbAnswer:b B
Diff:b2 Type:bMC PagebRef:b5
LearningbObj.:b 1-
1b Identifybthebcomponentsbofbanbauditbandbexplainbwhybtherebisbabdemandbforbaudits

4) InbthebauditbofbhistoricalbfinancialbstatementsbbybPAbfirms,bthebcriteriabusedbare
A) generallybacceptedbauditingbstandards.
B) generallybacceptedbaccountingbprinciples.
C) regulationsbofbthebCanadabRevenuebAgency.
D) regulationsbofbthebprovincialbsecuritiesbcommissions.
bAnswer:b B

Diff:b1 Type:bMC PagebRef:b5
LearningbObj.:b 1-
1b Identifybthebcomponentsbofbanbauditbandbexplainbwhybtherebisbabdemandbforbaudits




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©b2013bPearsonbCanadabInc.

, 5) AblargebPAbfirmbhasbassessedbevidencebcollectedbduringbanbengagement.bCriteriabusedbtobasses
sbthebfinancialbstatementsbwerebInternationalbFinancialbReportingbStandardsb(IFRS).bAbhighblevelbof
bassurancebwasbobtained.bThebtypebofbengagementbconductedbwasba(n)

A) audit.
B) review.
C) managementbconsulting.
D) compilation.
Answer:b A
Diff:b2 Type:bMC PagebRef:b5
LearningbObj.:b 1-
1b Identifybthebcomponentsbofbanbauditbandbexplainbwhybtherebisbabdemandbforbaudits

6) Thebauditorbandbthebentitiesbshouldbagreebonbthebcriteriabtobbebusedbinbthebaudit
A) beforebthebauditbstarts.
B) afterbthebauditbplanningbhasbbeenbdone.
C) asbtheybprogressbwithbthebauditbasbtheybcanbdeterminebwhichbcriteriabisbmorebsuitable.
D) atbthebendbofbthebaudit.
bAnswer:b A

Diff:b1 Type:bMC PagebRef:b5
LearningbObj.:b 1-
1b Identifybthebcomponentsbofbanbauditbandbexplainbwhybtherebisbabdemandbforbaudits

7) Georgebhadbabconversationbwithbthebaccountingbpersonnelbandbdocumentedbinformationbabou
tbhowbthebaccountingbsystemsbfunction.bHebhasbalsobplacedbcopiesbofbaccountingbformsbinbhisbfile
s.bGeorgebisbperformingbwhichbtask?
A) accountingbprocedures
B) evidencebgathering
C) taxbaudit
D) auditbreportbpreparatio
nbAnswer:b B
Diff:b3 Type:bMC PagebRef:b5
LearningbObj.:b 1-
1b Identifybthebcomponentsbofbanbauditbandbexplainbwhybtherebisbabdemandbforbaudits

8) Onebofbthebreasonsbthatbanbauditorbmustbbebcompetentbisbtobbebablebto
A) understandbthebengagementbrisksbandbthebcriteriabusedbbybthebclient.
B) explainbhowbthebbookkeepingbshouldbbebdonebtobhisbstaff.
C) recordbthebtransactionsbproperlybforbthebunderlyingbrecords.
D) capturebthebinformationbproperlybinbthebcomputerbfiles.
bAnswer:b A

Diff:b2 Type:bMC PagebRef:b6
LearningbObj.:b 1-
1b Identifybthebcomponentsbofbanbauditbandbexplainbwhybtherebisbabdemandbforbaudits


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©b2013bPearsonbCanadabInc.