Auditing, Assurance Services & Ethics in Australia, 10th Edition Arens, Best, Shailer, Fiedler, Elder, Beasley Test Bank

1) As businesses become more complex and need more reliable information, public accountants play a vital role in: A) providing tax services. B) providing business advisory services. C) providing assurance on information other than financial reports. D) all of the above Answer: D Diff: 1 Topic: Assurance services AACSB: Written and Oral Communication Objective: LO 1.1. Describe assurance services, and distinguish audit services from other assurance and non-assurance services provided by public accountants. 2) Auditors are valued for their experience in assisting companies to improve operations and: A) independence in providing assurances. B) technical knowledge. C) competence. D) all of the above Answer: D Diff: 1 Topic: Assurance services AACSB: Written and Oral Communication Objective: LO 1.1. Describe assurance services, and distinguish audit services from other assurance and non-assurance services provided by public accountants. 3) Any service in which the public accounting firm issues a written communication expressing a conclusion with respect to the reliability of a written assertion that is the responsibility of another party is: A) an accounting and bookkeeping service. B) a management advisory service. C) a tax service. D) an attestation service. Answer: D Diff: 1 Topic: Assurance services AACSB: Written and Oral Communication Objective: LO 1.1. Describe assurance services, and distinguish audit services from other assurance and non-assurance services provided by public accountants. 4) Which of the following is classified as an attestation service? A) Compilation B) Tax planning engagement C) Consulting engagement D) Audit of historical financial statements Answer: D Diff: 1 Topic: Assurance services AACSB: Written and Oral Communication Objective: LO 1.1. Describe assurance services, and distinguish audit services from other assurance and nonassurance services provided by public accountants. 5) When a business contacts an auditor for a service providing no assurances, what type of engagement is being requested? A) Audit B) Tax Planning C) Review D) Compliance Answer B Diff: 1 Topic: Assurance services AACSB: Written and Oral Communication Objective: LO 1.1. Describe assurance services, and distinguish audit services from other assurance and nonassurance services provided by public accountants. 6) An audit of historical financial statements is a form of: A) assurance service in which the auditor issues a written report expressing an opinion about whether the financial statements are in material conformity with auditing standards. B) attestation service in which the auditor issues a written report expressing an opinion about whether the financial statements are in material conformity with auditing standards. C) attestation service in which the auditor issues a written report expressing an opinion about whether the financial statements are in material conformity with accounting standards. D) none of the above Answer: C Diff: 1 Topic: Assurance services AACSB: Written and Oral Communication Objective: LO 1.1. Describe assurance services, and distinguish audit services from other assurance and non-assurance services provided by public accountants. 7) Privately held companies have annual financial statement audits: A) to obtain financing from banks. B) because external users rely on it. C) because they are required to under the Corporations Act. D) all of the above Answer: A Diff: 1