Auditing and Assurance Services – Test Bank | Arens, Elder, Beasley, Hogan | 16th Edition | Complete Exam Preparation Material

,Auditing NNand NNAssurance NNServices, (Arens)
Chapter NN1 N N N N The NNDemand NNfor NNAudit NNand NNOther NNAssurance NNServices

Learning NNObjective NN1-1

1) The NNSarbanes-Oxley NNAct NNapplies NNto NNwhich NNof NNthe NNfollowing NNcompanies?
A) All NNcompanies
B) Privately NNheld NNcompanies
C) Public NNcompanies
D) All NNpublic NNcompanies NNand NNprivately NNheld NNcompanies NNwith NNassets
NNgreater NNthan NN$500 NNmillion NN Answer: N N C
Terms: N N Sarbanes-Oxley
NNAct NNDiff: N N Easy
Objective: N N LO NN1-1
AACSB: N N Reflective NNthinking
NNskills NNTopic: N N SOX


2) Which NNof NNthe NNfollowing NNis NNconsidered
NNaudit NNevidence? NN A)
Oral NNstatements Written Auditor
NN made NNby NNCommunications NNObservation
NNmanagement
Y N N

B)
Oral NNstatements Written Auditor
NN made NNby NNCommunications NNObservation
NNmanagement
N Y Y

C)
Oral NNstatements Written Auditor
NN made NNby NNCommunications NNObservation
NNmanagement
Y Y Y

D)
Oral NNstatements Written Auditor
NN made NNby NNCommunications NNObservation
NNmanagement
N N Y

Answer: N N C
Terms: N N Audit
NNevidence NN Diff:
N N Moderate
NNObjective: N N LO NN1-

1

,1
AACSB: NN Reflective NNthinking NNskills




1

, 3) Evidence NNis NNparamount NNto NNaudit NNand NNattestation NNengagements. NNList NNthe
NNfour NNbasic NNtypes NNof NNaudit NNevidence.
Answer: N N The NNfour NNtypes NNof NNaudit NNand NNattestation NNevidence NNinclude:
1. Electronic NNand NNdocumentary NNdata NNabout NNtransactions
2. Written NNand NNelectronic NNcommunications NNwith NNoutsiders
3. Observations NNby NNthe NNauditor
4. Oral NNtestimony NNof NNthe NNauditee
NN(client) NNTerms: N N Basic NNtypes
NNof NNaudit NNevidence NNDiff:
N N Easy
Objective: N N LO NN1-1
AACSB: N N Reflective NNthinking NNskills

4) The NNcriteria NNby NNwhich NNan NNauditor NNevaluates NNthe NNinformation NNunder
NNaudit NNmay NNvary NNwith NNthe NN information NNbeing NNaudited.
A) True
B) False
NNAnswer:
NNA
Terms: N N Criteria NNwhich NNan NNauditor NNevaluates
NNinformation NNDiff: N N Easy
Objective: N N LO NN1-1
AACSB: N N Reflective NNthinking NNskills

5) The NNcriteria NNused NNby NNan NNexternal NNauditor NNto NNevaluate NNpublished NNfinancial
NNstatements NNare NNknown NNas NNgenerally NNaccepted NNauditing NN standards.
A) True
B) False
NNAnswer:
NNB
Terms: N N Criteria NNused NNby NNexternal NNauditor NNto NNevaluate NNpublished
NNfinancial NNstatements NNDiff: N N Easy
Objective: N N LO NN1-1
AACSB: N N Reflective NNthinking NNskills

6) The NNSarbanes-Oxley NNAct NNestablishes NNstandards NNrelated NNto NNthe NNaudits
NNof NNprivately NNheld NNcompanies.
A) True
B) False
NNAnswer:
NNB
Terms: N N Sarbanes-Oxley
NNAct NNDiff: N N Easy
Objective: N N LO NN1-1
AACSB: N N Reflective NNthinking
NNskills NNTopic: N N SOX




2