Examen

[TEST BANK] AUDITING AND ASSURANCE SERVICES, 16TH EDITION BY ARENS, ELDER, BEASLEY, HOGAN.

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Auditing and Assurance Services, (Arens) 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 1 Page 2 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 6) The Sarbanes-Oxley Act establishes standards related to the audits of privately held companies. A) True B) False Answer: B Terms: Sarbanes-Oxley Act Diff: Easy Objective: LO 1-1 AACSB: Reflective thinking skills Topic: SOX 2 Page 3 7) The Sarbanes-Oxley Act is widely viewed as having ushered in sweeping changes to auditing and financial reporting. A) True B) False Answer: A Terms: Sarbanes-Oxley Act Diff: Easy Objective: LO 1-1 AACSB: Reflective thinking skills Topic: SOX 8) An auditor must be competent and have an independent mental attitude. A) True B) False Answer: A Terms: Competence and independent mental attitude Diff: Easy Objective: LO 1-1 AACSB: Reflective thinking skills

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Alvin A. Arens, Randal J. Elder, Mark S. Beasley Auditing and Assurance Services

Edición:2016
ISBN:9780134065823
Edición:Desconocido

Escuela, estudio y materia

Institución: Pearsons
Grado: Pearsons

Información del documento

Subido en: 13 de septiembre de 2025
Número de páginas: 784
Escrito en: 2025/2026
Tipo: Examen
Contiene: Preguntas y respuestas

Temas

9780134065823
16th edition by arens
elder
beasley
hogan
test bank auditing and assurance services

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