Test Bank for Auditing and Assurance Services 16th Edition – Arens, Elder & Beasley | 2025/2026 Latest Update

AuditingAssuranceervices, (Arens)



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

,Chapterw s 1 Thew s Demandw s forw s Auditw s andw s Otherw s Assurancew s Services

Learningw s Objectivew s 1-1

1) Thew s Sarbanes-Oxleyw s Actw s appliesw s tow s whichw s ofw s thew s followingw s companies?
A) Allw s companies
B) Privatelyw s heldw s companies
C) Publicw s companies
D) Allw s publicw s companiesw s andw s privatelyw s heldw s companiesw s withw s assetsw s greaterw s t
hanw s $500wsmillionw s Answer: C
Terms: Sarbanes-
OxleywsActwsDiff: Easy
Objective: LOw s 1-1
AACSB:
Reflectivewsthinkingwsskillsw
sTopic: SOX

2) Whichw s ofw s thew s followingw s isw s consideredw s
auditwsevidence?w s A)
Oralw s statementsws WrittenwsCom AuditorwsObser
madewsby munications vation
management
Y N N

B)
Oralw s statementsws WrittenwsCom AuditorwsObser
madewsbywsmanageme munications vation
nt
N Y Y

C)
Oralw s statementsws WrittenwsCom AuditorwsObser
madewsby munications vation
management
Y Y Y

D)
Oralw s statementsws WrittenwsCom AuditorwsObser
madewsbywsmanageme munications vation
nt
N N Y

Answer: C
Terms:
Auditwsevidencew
Diff:
s

ModeratewsObje
1

, ctive: LOw s 1-1
AACSB: Reflectivew s thinkingw s skills




1

, 3) Evidencew s isw s paramountw s tow s auditw s andw s attestationw s engagements.w s Listw s thew s fourw s b
asicw s typeswsofw s auditw s evidence.
Answer: Thew s fourw s typesw s ofw s auditw s andw s attestationw s evidencew s include:
1. Electronicw s andw s documentaryw s dataw s aboutw s transactions
2. Writtenw s andw s electronicw s communicationsw s withw s outsiders
3. Observationsw s byw s thew s auditor
4. Oralw s testimonywsofwsthew s audit
eews(client)w s Terms:
Basicw s typesw s ofwsauditw s eviden
cew s Diff: EasywsObjective:
LOw s 1-1
AACSB: Reflectivew s thinkingw s skills

4) Thew s criteriaw s byw s whichw s anw s auditorw s evaluatesw s thew s informationw s underw s auditw s
mayw s varywswithw s thew s informationw s beingw s audited.
A) True
B) Falsews
Answer:
A
Terms:
Criteriaw s whichw s anw s auditorw s evalu
ateswsinformationw s Diff: Easy
Objective: LOw s 1-1
AACSB: Reflectivew s thinkingw s skills

5) Thew s criteriaw s usedw s byw s anw s externalw s auditorw s tow s evaluatew s publishedw s financialw s state
mentsw s arewsknownw s asw s generallyw s acceptedw s auditingw s standards.
A) True
B) Falsews
Answer:
B
Terms:
Criteriaw s usedw s byw s externalw s auditorw s tow s evaluatew s publishedw s fi
nancialwsstatementsw s Diff: Easy
Objective: LOw s 1-1
AACSB: Reflectivew s thinkingw s skills

6) Thew s Sarbanes-
Oxleyw s Actw s establishesw s standardsw s relatedw s tow s thew s auditsw s ofw s privatelywsheldw s c
ompanies.
A) True
B) Falsews
Answer:
B
Terms: Sarbanes-
OxleywsActwsDiff: Easy
Objective: LOw s 1-1
AACSB:
2