TEST BANK FOR AUDITING & ASSURANCE SERVICES, 15TH EDITION

TEST BANK FOR
AUDITING & ASSURANCE SERVICES, 15TH
EDITION
BY ARENS. ALL CHAPTERS COVERED 1-24

,Table of Contents
Chapter 1 The Demand For Audit And Other Assurance Services ............................................................. 3
Chapter 2 The CPA Profession ................................................................................................................... 21
Chapter 3 Audit Reports............................................................................................................................. 45
Chapter 4 Professional Ethics................................................................................................................... 110
Chapter 5 Legal Liability ........................................................................................................................... 158
Chapter 6 Audit Responsibilities And Objectives .................................................................................... 201
Chapter 7 Audit Evidence ......................................................................................................................... 251
Chapter 8 Audit Planning And Analytical Procedures ............................................................................ 292
Chapter 9 Materiality And Risk ................................................................................................................ 329
Chapter 10 Internal Control, Control Risk, And Section 404 Audits ...................................................... 372
Chapter 11 Fraud Auditing ....................................................................................................................... 414
Chapter 14 Audit Of The Sales And Collection Cycle: Tests Of Controls And Substantive Tests Of
Transactions ............................................................................................................................................. 445
Chapter 15 Audit Sampling For Tests Of Controls And Substantive Tests Of Transactions .................. 482
Chapter 16 Completing The Tests In The Sales And Collection Cycle: Accounts Receivable ................ 523
Chapter 17 Audit Sampling For Tests Of Details Of Balances ................................................................ 559
Chapter 18 Audit Of The Acquisition And Payment Cycle: Tests Of Controls, Substantive Tests Of
Transactions, And Accounts Payable ....................................................................................................... 601
Chapter 19 Completing The Tests In The Acquisition And Payment Cycle: Verification Of Selected
Accounts ................................................................................................................................................... 640
Chapter 20 Audit Of The Payroll And Personnel Cycle........................................................................... 674
Chapter 21 Audit Of The Inventory And Warehousing Cycle................................................................. 714
Chapter 22 Audit Of The Capital Acquisition And Repayment Cycle ..................................................... 753
Chapter 23 Audit Of Cash And Financial Instruments ............................................................................ 785
Chapter 24 Completing The Audit ........................................................................................................... 827

,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
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 Made By Management Written Communications Auditor Observation

Y N N

B)

Oral Statements Made By Management Written Communications Auditor Observation

N Y Y

C)

Oral Statements Made By Management Written Communications Auditor Observation

Y Y Y

D)

Oral Statements Made By Management Written Communications Auditor Observation

N N Y

Answer: C

Terms: Audit Evidence Diff: Moderate Objective: LO 1-1

, AACSB: Reflective Thinking Skills



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

B) 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

B) False

Answer: B

Terms: Criteria Used By External Auditor To Evaluate Published Financial Statements Diff: Easy

Objective: LO 1-1

AACSB: Reflective Thinking Skills