TEST BANK
TEST BANK FOR AUDITING AND ASSURANCE SERVICES, 16TH EDITION
BY ARENS, ELDER, BEASLEY, HOGAN | LATEST (2026/2027) UPDATED
VERSION
THIS DOCUMENT CONTAINS:
❖FULL TEST BANK
❖AUDITING AND ASSURANCE SERVICES
❖16TH EDITION
❖BY ARENS, ELDER, BEASLEY, HOGAN
❖LATEST (2026/2027) UPDATED VERSION
,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 Written Auditor
made by Communications Observation
management
Y N N
1
,B)
Oral statements Written Auditor
made by Communications Observation
management
N Y Y
C)
Oral statements Written Auditor
made by Communications Observation
management
Y Y Y
D)
Oral statements Written Auditor
made by Communications Observation
management
N N Y
Answer: C
Terms: Audit evidence
Diff: Moderate
Objective: LO 1-1
AACSB: Reflective thinking skills
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.
TEST BANK FOR AUDITING AND ASSURANCE SERVICES, 16TH EDITION
BY ARENS, ELDER, BEASLEY, HOGAN | LATEST (2026/2027) UPDATED
VERSION
THIS DOCUMENT CONTAINS:
❖FULL TEST BANK
❖AUDITING AND ASSURANCE SERVICES
❖16TH EDITION
❖BY ARENS, ELDER, BEASLEY, HOGAN
❖LATEST (2026/2027) UPDATED VERSION
,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 Written Auditor
made by Communications Observation
management
Y N N
1
,B)
Oral statements Written Auditor
made by Communications Observation
management
N Y Y
C)
Oral statements Written Auditor
made by Communications Observation
management
Y Y Y
D)
Oral statements Written Auditor
made by Communications Observation
management
N N Y
Answer: C
Terms: Audit evidence
Diff: Moderate
Objective: LO 1-1
AACSB: Reflective thinking skills
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.
