TEST BANK
Auditing and Assurance Services, 17th edition
By Alvin A. Arens, Randal J. Elder
IM
PR
ES
SI
VE
G
R
AD
ES
, Table of Content
PART 1: THE AUDITING PROFESSION
The Demand for Audit and Other Assurance Services
The CPA Profession
Audit Reports
IM
Professional Ethics
Legal Liability
PART 2: THE AUDIT PROCESS
Audit Responsibilities and Objectives
PR
Audit Evidence
Audit Planning and Materiality
Assessing the Risk of Material Misstatement
Assessing and Responding to Fraud Risks
Internal Control and Coso Framework
ES
Assessing Control Risk and Reporting on Internal Controls
Overall Audit Strategy and Audit Program
PART 3: APPLICATION OF THE AUDIT PROCESS TO THE SALES AND
COLLECTION CYCLE
SI
Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of
Transactions
Audit Sampling for Tests of Controls and Substantive Tests of Transactions
VE
Completing the Tests in the Sales and Collection Cycle: Accounts Receivable
Audit Sampling for Tests of Details of Balances
PART 4: APPLICATION OF THE AUDIT PROCESS TO OTHER CYCLES
Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of
Transactions, and Accounts Payable
G
Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts
Audit of the Payroll and Personnel Cycle
R
Audit of the Inventory and Warehousing Cycle
Audit of the Capital Acquisition and Repayment Cycle
Audit of Cash and Financial Instruments
AD
PART 5: COMPLETING THE AUDIT
Completing the Audit
PART 6: OTHER ASSURANCE AND NONASSURANCE SERVICES
Other Assurance Services
ES
Internal and Governmental Financial Auditing and Operational Auditing
, All Chapters Included
hgfdsatre All Answers Included
TEST BANK FOR
Auditing and Assurance Services, 17e (Arens/Elder/Beasley)
Chapter 1 The Demand for Audit and Other Assurance Services
IM
1.1 Learning Objective 1-1
1) In the auditing process,
A) the types and amounts of evidence remain constant from audit to audit.
PR
B) the criteria for evaluating information will not vary depending on the information being
audited.
C) the audit report communicates the auditor's findings to users.
D) records are gathered by the auditor to determine whether the audited information is stated in
accordance with SEC standards.
ES
Answer: C
Terms: Audit process
Difficulty: Moderate
Objective: LO 1-1
AACSB: Reflective thinking
SI
2) Which of the following is considered audit evidence?
A)
Oral statements Written Auditor
made by management Communications Observations
VE
Y N N
B)
Oral statements Written Auditor
made by management Communications Observations
G
N Y Y
C)
R
Oral statements Written Auditor
made by management Communications Observations
Y Y Y
AD
D)
Oral statements Written Auditor
made by management Communications Observations
N N Y
ES
Answer: C
Terms: Audit evidence
Difficulty: Easy
Objective: LO 1-1
AACSB: Reflective thinking
uytrew
, hgfdsatre
3) Which of the following can be used as a criterion for evaluating information being audited?
A) International Financial Reporting Standards (IFRS)
B) Generally Accepted Accounting Principles (GAAP)
C) Internal Revenue Code (IRC)
IM
D) all of the above
Answer: D
Terms: Criteria by which an auditor evaluates information
Difficulty: Moderate
Objective: LO 1-1
PR
AACSB: Reflective thinking
4) Auditors do not provide which of the following?
A) assurance on financial statements
B) assurance on the effectiveness of internal controls over financial reporting
ES
C) assurance on corporate sustainability reports
D) absolute assurance on the financial statements including assuming responsibility for them
Answer: D
Terms: Nature of Objectives of Auditing
Difficulty: Moderate
Objective: LO 1-1
SI
AACSB: Reflective thinking
5) The accumulation and evaluation of evidence about information to determine and report on
the degree of correspondence between the information and some established criteria is defined as
VE
A) accounting.
B) financial reporting.
C) tax reporting.
D) auditing.
Answer: D
G
Terms: Definition of auditing
Difficulty: Moderate
Objective: LO 1-1
R
AACSB: Reflective thinking
6) The criteria by which an auditor evaluates the information under audit may vary with the
AD
information being audited.
Answer: TRUE
Terms: Criteria by which an auditor evaluates information
Difficulty: Easy
Objective: LO 1-1
AACSB: Reflective thinking
ES
uytrew
Auditing and Assurance Services, 17th edition
By Alvin A. Arens, Randal J. Elder
IM
PR
ES
SI
VE
G
R
AD
ES
, Table of Content
PART 1: THE AUDITING PROFESSION
The Demand for Audit and Other Assurance Services
The CPA Profession
Audit Reports
IM
Professional Ethics
Legal Liability
PART 2: THE AUDIT PROCESS
Audit Responsibilities and Objectives
PR
Audit Evidence
Audit Planning and Materiality
Assessing the Risk of Material Misstatement
Assessing and Responding to Fraud Risks
Internal Control and Coso Framework
ES
Assessing Control Risk and Reporting on Internal Controls
Overall Audit Strategy and Audit Program
PART 3: APPLICATION OF THE AUDIT PROCESS TO THE SALES AND
COLLECTION CYCLE
SI
Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of
Transactions
Audit Sampling for Tests of Controls and Substantive Tests of Transactions
VE
Completing the Tests in the Sales and Collection Cycle: Accounts Receivable
Audit Sampling for Tests of Details of Balances
PART 4: APPLICATION OF THE AUDIT PROCESS TO OTHER CYCLES
Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of
Transactions, and Accounts Payable
G
Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts
Audit of the Payroll and Personnel Cycle
R
Audit of the Inventory and Warehousing Cycle
Audit of the Capital Acquisition and Repayment Cycle
Audit of Cash and Financial Instruments
AD
PART 5: COMPLETING THE AUDIT
Completing the Audit
PART 6: OTHER ASSURANCE AND NONASSURANCE SERVICES
Other Assurance Services
ES
Internal and Governmental Financial Auditing and Operational Auditing
, All Chapters Included
hgfdsatre All Answers Included
TEST BANK FOR
Auditing and Assurance Services, 17e (Arens/Elder/Beasley)
Chapter 1 The Demand for Audit and Other Assurance Services
IM
1.1 Learning Objective 1-1
1) In the auditing process,
A) the types and amounts of evidence remain constant from audit to audit.
PR
B) the criteria for evaluating information will not vary depending on the information being
audited.
C) the audit report communicates the auditor's findings to users.
D) records are gathered by the auditor to determine whether the audited information is stated in
accordance with SEC standards.
ES
Answer: C
Terms: Audit process
Difficulty: Moderate
Objective: LO 1-1
AACSB: Reflective thinking
SI
2) Which of the following is considered audit evidence?
A)
Oral statements Written Auditor
made by management Communications Observations
VE
Y N N
B)
Oral statements Written Auditor
made by management Communications Observations
G
N Y Y
C)
R
Oral statements Written Auditor
made by management Communications Observations
Y Y Y
AD
D)
Oral statements Written Auditor
made by management Communications Observations
N N Y
ES
Answer: C
Terms: Audit evidence
Difficulty: Easy
Objective: LO 1-1
AACSB: Reflective thinking
uytrew
, hgfdsatre
3) Which of the following can be used as a criterion for evaluating information being audited?
A) International Financial Reporting Standards (IFRS)
B) Generally Accepted Accounting Principles (GAAP)
C) Internal Revenue Code (IRC)
IM
D) all of the above
Answer: D
Terms: Criteria by which an auditor evaluates information
Difficulty: Moderate
Objective: LO 1-1
PR
AACSB: Reflective thinking
4) Auditors do not provide which of the following?
A) assurance on financial statements
B) assurance on the effectiveness of internal controls over financial reporting
ES
C) assurance on corporate sustainability reports
D) absolute assurance on the financial statements including assuming responsibility for them
Answer: D
Terms: Nature of Objectives of Auditing
Difficulty: Moderate
Objective: LO 1-1
SI
AACSB: Reflective thinking
5) The accumulation and evaluation of evidence about information to determine and report on
the degree of correspondence between the information and some established criteria is defined as
VE
A) accounting.
B) financial reporting.
C) tax reporting.
D) auditing.
Answer: D
G
Terms: Definition of auditing
Difficulty: Moderate
Objective: LO 1-1
R
AACSB: Reflective thinking
6) The criteria by which an auditor evaluates the information under audit may vary with the
AD
information being audited.
Answer: TRUE
Terms: Criteria by which an auditor evaluates information
Difficulty: Easy
Objective: LO 1-1
AACSB: Reflective thinking
ES
uytrew
