Test Bank For Auditing And Assurance Services, 17th Edition by Alvin A Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan ISBN; 9780134897431 All Chapters Fully Covered||COMPLETE GUIDE A+||.

TEST BANK $aq




Auditing and Assurance Services (an integrated approach)
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by Randal J. Elder Mark S. Beasley Chris E. Hogan Alvin A.
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Arens 17th edition
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FULLTE ST BANK!!! $aq 1 $aq

,Auditing and Assurance Services, 17e (Arens/Elder/Beasley)
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 Written Auditor
made by management Communications Observation
Y N N

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

C)
Oral statements Written Auditor
made by management Communications Observation
Y Y Y

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

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




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,3) Evidence $aqis $aqparamount $aqto $aqaudit $aqand $aqattestation $aqengagements. $aqList $aqthe $aqfour $aqbasic
$aqtypes $aqof $aqaudit $aqevidence.

Answer: $ a q The $aqfour $aqtypes $aqof $aqaudit $aqand $aqattestation $aqevidence $aqinclude:
1. Electronic $aqand $aqdocumentary $aqdata $aqabout $aqtransactions
2. Written $aqand $aqelectronic $aqcommunications $aqwith $aqoutsiders
3. Observations $aqby $aqthe $aqauditor
4. Oral $aqtestimony$aqof $aqthe $aqauditee
$aq(client) $aqTerms: $aqBasic $aqtypes $aqof

$aqaudit $aqevidence $aqDiff: $ a q Easy

Objective: $ a q LO $aq1-1
AACSB: $ a q Reflective $aqthinking $aqskills

4) The $aqcriteria $aqby $aqwhich $aqan $aqauditor $aqevaluates $aqthe $aqinformation $aqunder $aqaudit $aqmay
$aqvary $aqwith $aqthe $aqinformation $aqbeing $aqaudited.

A) True
B) False
$aqAnswer:

$aqA

Terms: $aqCriteria $aqwhich $aqan $aqauditor $aqevaluates
$aqinformation $aqDiff: $ a q Easy

Objective: $ a q LO $aq1-1
AACSB: $ a q Reflective $aqthinking $aqskills

5) The $aqcriteria $aqused $aqby $aqan $aqexternal $aqauditor $aqto $aqevaluate $aqpublished $aqfinancial $aqstatements
$aqare $aqknown $aqas $aqgenerally $aqaccepted $aqauditing $aqstandards.

A) True
B) False
$aqAnswer:

$aqB

Terms: $ a q Criteria $aqused $aqby $aqexternal $aqauditor $aqto $aqevaluate $aqpublished $aqfinancial
$aqstatements $aqDiff: $ a q Easy

Objective: $ a q LO $aq1-1
AACSB: $ a q Reflective $aqthinking $aqskills

6) The $aqSarbanes-Oxley $aqAct $aqestablishes $aqstandards $aqrelated $aqto $aqthe $aqaudits $aqof
$aqprivately $aqheld $aqcompanies.

A) True
B) False
$aqAnswer:

$aqB

Terms: $aqSarbanes-Oxley
$aqAct $aqDiff: $ a q Easy

Objective: $ a q LO $aq1-1
AACSB: $aqReflective $aqthinking $aqskills
$aqTopic: $ a q SOX




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, 7) The $aqSarbanes-Oxley $aqAct $aqis $aqwidely $aqviewed $aqas $aqhaving $aqushered $aqin $aqsweeping $aqchanges
$aqto $aqauditing $aqand $aqfinancial $aqreporting.

A) True
B) False
$aqAnswer:

$aqA

Terms: $aqSarbanes-Oxley
$aqAct $aqDiff: $ a q Easy

Objective: $ a q LO $aq1-1
AACSB: $aqReflective $aqthinking $aqskills
$aqTopic: $ a q SOX




8) An $aqauditor $aqmust $aqbe $aqcompetent $aqand $aqhave $aqan $aqindependent $aqmental $aqattitude.
A) True
B) False
$aqAnswer:

$aqA

Terms: $ a q Competence $aqand $aqindependent $aqmental
$aqattitude $aqDiff: $ a q Easy

Objective: $ a q LO $aq1-1
AACSB: $aqReflective $aqthinking $aqskills

$aq Learning $aqObjective $aq1-2

1) Recording, $aqclassifying, $aqand $aqsummarizing $aqeconomic $aqevents $aqin $aqa $aqlogical $aqmanner $aqfor
$aqthe $aqpurpose $aqof $aqproviding $aqfinancial $aqinformation $aqfor $aqdecision $aqmaking $aqis $aqcommonly

$aqcalled:

A) finance.
B) auditing.
C) accounting.
D) economics.
$aqAnswer:

$ aq C

Terms: $ a q Recording, $aqclassifying, $aqand $aqsummarizing $aqeconomic
$aqevents $aqDiff: $ a q Easy

Objective: $ a q LO $aq1-2
AACSB: $ a q Reflective $aqthinking $aqskills

2) An $aqaccountant:
A) must $aqpossess $aqexpertise $aqin $aqthe $aqaccumulation $aqof $aqaudit $aqevidence.
B) must $aqdecide $aqthe $aqnumber $aqand $aqtypes $aqof $aqitems $aqto $aqtest.
C) must $aqhave $aqan $aqunderstanding $aqof $aqthe $aqprinciples $aqand $aqrules $aqthat $aqprovide $aqthe $aqbasis $aqfor
$aqpreparing $aqthe $aqaccounting $aqinformation.

D) must $aqbe $aqa
$aqCPA.

Answer: $ a q C
Terms: $a q Distinguishes $aqauditors $aqfrom
$aqaccountants $aqDiff: $ a q Moderate

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