ST
Auditing and Assurance Services
UV 17th Edition
IA_
TEST BANK
AP
PR
O VE
Alvin A. Arens
Randal J. Elder D?
Mark S. Beasley
Chris E. Hogan
Comprehensive Test Bank for Instructors
and Students
© Alvin A. Arens, Randal J. Elder, Mark S. Beasley & Chris E. Hogan
All rights reserved. Reproduction or distribution without permission is prohibited.
©MEDGEEK
,ST
Auditing and Assurance Services – 17th Edition
(ISBN 9780135176115)
Alvin A. Arens, Randal J. Elder, Mark S. Beasley & Chris E. Hogan
UV
TABLE OF CONTENTS
IA_
Part 1: The Auditing Profession
Chapter 1. The Demand for Audit and Other Assurance Services
Chapter 2. The CPA Profession
AP
Chapter 3. Audit Reports
Chapter 4. Professional Ethics
Chapter 5. Legal Liability
Part 2: The Audit Process
PR
Chapter 6. Audit Responsibilities and Objectives
Chapter 7. Audit Evidence
Chapter 8. Audit Planning and Materiality
O
Chapter 9. Assessing the Risk of Material Misstatement
Chapter 10. Assessing and Responding to Fraud Risks VE
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
D?
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 Tests of Transactions
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 Cycle: Verification of
Selected Accounts
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
©MEDGEEK
,ST
Auditing and Assurance Services, 17e (Arens/Elder/Beasley)
Chapter 1 The Demand for Audit and Other Assurance Services
UV
1.1 Learning Objective 1-1
1) In the auditing process,
A) the types and amounts of evidence remain constant from audit to audit.
audited.
IA_
B) the criteria for evaluating information will not vary depending on the information being
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. AP
Answer: C
Terms: Audit process
Difficulty: Moderate
Objective: LO 1-1
AACSB: Reflective thinking
PR
2) Which of the following is considered audit evidence?
A)
Oral statements
made by management
Y
Written
Communications
N
OV
Auditor
Observations
N
B)
Oral statements
made by management
Written
Communications
Auditor
Observations
ED
N Y Y
C)
Oral statements Written Auditor
?
made by management Communications Observations
Y Y Y
D)
Oral statements Written Auditor
made by management Communications Observations
N N Y
Answer: C
Terms: Audit evidence
Difficulty: Easy
Objective: LO 1-1
AACSB: Reflective thinking
1
Copyright © 2020 Pearson Education, Inc.
, ST
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)
UV
C) Internal Revenue Code (IRC)
D) all of the above
Answer: D
Terms: Criteria by which an auditor evaluates information
IA_
Difficulty: Moderate
Objective: LO 1-1
AACSB: Reflective thinking
4) Auditors do not provide which of the following?
AP
A) assurance on financial statements
B) assurance on the effectiveness of internal controls over financial reporting
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
PR
Objective: LO 1-1
AACSB: Reflective thinking
OV
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
A) accounting.
B) financial reporting.
C) tax reporting.
D) auditing.
ED
Answer: D
Terms: Definition of auditing
Difficulty: Moderate
Objective: LO 1-1
?
AACSB: Reflective thinking
6) The criteria by which an auditor evaluates the information under audit may vary with the
information being audited.
Answer: TRUE
Terms: Criteria by which an auditor evaluates information
Difficulty: Easy
Objective: LO 1-1
AACSB: Reflective thinking
2
Copyright © 2020 Pearson Education, Inc.
Auditing and Assurance Services
UV 17th Edition
IA_
TEST BANK
AP
PR
O VE
Alvin A. Arens
Randal J. Elder D?
Mark S. Beasley
Chris E. Hogan
Comprehensive Test Bank for Instructors
and Students
© Alvin A. Arens, Randal J. Elder, Mark S. Beasley & Chris E. Hogan
All rights reserved. Reproduction or distribution without permission is prohibited.
©MEDGEEK
,ST
Auditing and Assurance Services – 17th Edition
(ISBN 9780135176115)
Alvin A. Arens, Randal J. Elder, Mark S. Beasley & Chris E. Hogan
UV
TABLE OF CONTENTS
IA_
Part 1: The Auditing Profession
Chapter 1. The Demand for Audit and Other Assurance Services
Chapter 2. The CPA Profession
AP
Chapter 3. Audit Reports
Chapter 4. Professional Ethics
Chapter 5. Legal Liability
Part 2: The Audit Process
PR
Chapter 6. Audit Responsibilities and Objectives
Chapter 7. Audit Evidence
Chapter 8. Audit Planning and Materiality
O
Chapter 9. Assessing the Risk of Material Misstatement
Chapter 10. Assessing and Responding to Fraud Risks VE
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
D?
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 Tests of Transactions
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 Cycle: Verification of
Selected Accounts
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
©MEDGEEK
,ST
Auditing and Assurance Services, 17e (Arens/Elder/Beasley)
Chapter 1 The Demand for Audit and Other Assurance Services
UV
1.1 Learning Objective 1-1
1) In the auditing process,
A) the types and amounts of evidence remain constant from audit to audit.
audited.
IA_
B) the criteria for evaluating information will not vary depending on the information being
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. AP
Answer: C
Terms: Audit process
Difficulty: Moderate
Objective: LO 1-1
AACSB: Reflective thinking
PR
2) Which of the following is considered audit evidence?
A)
Oral statements
made by management
Y
Written
Communications
N
OV
Auditor
Observations
N
B)
Oral statements
made by management
Written
Communications
Auditor
Observations
ED
N Y Y
C)
Oral statements Written Auditor
?
made by management Communications Observations
Y Y Y
D)
Oral statements Written Auditor
made by management Communications Observations
N N Y
Answer: C
Terms: Audit evidence
Difficulty: Easy
Objective: LO 1-1
AACSB: Reflective thinking
1
Copyright © 2020 Pearson Education, Inc.
, ST
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)
UV
C) Internal Revenue Code (IRC)
D) all of the above
Answer: D
Terms: Criteria by which an auditor evaluates information
IA_
Difficulty: Moderate
Objective: LO 1-1
AACSB: Reflective thinking
4) Auditors do not provide which of the following?
AP
A) assurance on financial statements
B) assurance on the effectiveness of internal controls over financial reporting
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
PR
Objective: LO 1-1
AACSB: Reflective thinking
OV
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
A) accounting.
B) financial reporting.
C) tax reporting.
D) auditing.
ED
Answer: D
Terms: Definition of auditing
Difficulty: Moderate
Objective: LO 1-1
?
AACSB: Reflective thinking
6) The criteria by which an auditor evaluates the information under audit may vary with the
information being audited.
Answer: TRUE
Terms: Criteria by which an auditor evaluates information
Difficulty: Easy
Objective: LO 1-1
AACSB: Reflective thinking
2
Copyright © 2020 Pearson Education, Inc.
