Test Bank for Auditing and Assurance Services,
17th Edition by Alvin A Arens
All 26 Chapters
,Table of Content
Part 1 The Auditing Profession
Chapter 1 The Demand for Audit and Other Assurance Services
Chapter 2 The CPA Profession
Chapter 3 Audit Reports
Chapter 4 Professional Ethics
Chapter 5 Legal Liability
Part 2 The Audit Process
Chapter 6 Audit Responsibilities and Objectives
Chapter 7 Audit Evidence
Chapter 8 Audit Planning and Materiality
Chapter 9 Assessing the Risk of Material Misstatement
Chapter 10 Assessing and Responding to Fraud Risks
Chapter 11 Internal Control and COSO Framework
Chapter 12 Assessing Control Risk and Reporting on Internal Controls
Chapter 13 Overall Audit Strategy and Audit Program
Part 3 Application of the Audit Process to the Sales and Collection cycle
Chapter 14 Audit of the Sales and Collection Cycle: Tests of Controls and
Substantive Tests of Transactions
Chapter 15 Audit Sampling for Tests of Controls and Substantive
Chapter 16 Completing the Tests in the Sales and Collection Cycle: Accounts
Receivable
Chapter 17 Audit Sampling for Tests of Details of Balances
Part 4 Application of the Audit Process to Other Cycles
Chapter 18 Audit of the Acquisition and Payment Cycle: Tests of Controls,
Substantive Tests of Transactions, and Accounts Payable
Chapter 19 Completing the Tests in the Acquisition and Payment
Chapter 20 Audit of the Payroll and Personnel Cycle
Chapter 21 Audit of the Inventory and Warehousing Cycle
Chapter 22 Audit of the Capital Acquisition and Repayment Cycle
Chapter 23 Audit of Cash and Financial Instruments
Part 5 Completing The Audit
Chapter 24 Completing the Audit
Part 6 Other Assurance and Nonassurance Services
Chapter 25 Other Assurance Services
Chapter 26 Internal and Governmental Financial Auditing and Operational
Auditing
,Auditing and Assurance Services, 17e (Arens/Elder/Beasley)
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 management Communications Observation
Y N N
B)
Oral statements Written Auditor
made by management Communications Observation
N Y Y
C)
Oral statements Written Auditor
made by management Communications Observation
Y Y Y
D)
Oral statements Written Auditor
made by management Communications Observation
N N Y
Answer: C
Terms: Audit evidence
Diff: Moderate Objective:
LO 1-1
AACSB: Reflective thinking skills
, 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
17th Edition by Alvin A Arens
All 26 Chapters
,Table of Content
Part 1 The Auditing Profession
Chapter 1 The Demand for Audit and Other Assurance Services
Chapter 2 The CPA Profession
Chapter 3 Audit Reports
Chapter 4 Professional Ethics
Chapter 5 Legal Liability
Part 2 The Audit Process
Chapter 6 Audit Responsibilities and Objectives
Chapter 7 Audit Evidence
Chapter 8 Audit Planning and Materiality
Chapter 9 Assessing the Risk of Material Misstatement
Chapter 10 Assessing and Responding to Fraud Risks
Chapter 11 Internal Control and COSO Framework
Chapter 12 Assessing Control Risk and Reporting on Internal Controls
Chapter 13 Overall Audit Strategy and Audit Program
Part 3 Application of the Audit Process to the Sales and Collection cycle
Chapter 14 Audit of the Sales and Collection Cycle: Tests of Controls and
Substantive Tests of Transactions
Chapter 15 Audit Sampling for Tests of Controls and Substantive
Chapter 16 Completing the Tests in the Sales and Collection Cycle: Accounts
Receivable
Chapter 17 Audit Sampling for Tests of Details of Balances
Part 4 Application of the Audit Process to Other Cycles
Chapter 18 Audit of the Acquisition and Payment Cycle: Tests of Controls,
Substantive Tests of Transactions, and Accounts Payable
Chapter 19 Completing the Tests in the Acquisition and Payment
Chapter 20 Audit of the Payroll and Personnel Cycle
Chapter 21 Audit of the Inventory and Warehousing Cycle
Chapter 22 Audit of the Capital Acquisition and Repayment Cycle
Chapter 23 Audit of Cash and Financial Instruments
Part 5 Completing The Audit
Chapter 24 Completing the Audit
Part 6 Other Assurance and Nonassurance Services
Chapter 25 Other Assurance Services
Chapter 26 Internal and Governmental Financial Auditing and Operational
Auditing
,Auditing and Assurance Services, 17e (Arens/Elder/Beasley)
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 management Communications Observation
Y N N
B)
Oral statements Written Auditor
made by management Communications Observation
N Y Y
C)
Oral statements Written Auditor
made by management Communications Observation
Y Y Y
D)
Oral statements Written Auditor
made by management Communications Observation
N N Y
Answer: C
Terms: Audit evidence
Diff: Moderate Objective:
LO 1-1
AACSB: Reflective thinking skills
, 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
