Test Bank For Auditing and Assurance Services, 17e (Arens/Elder/Beasley)Test Bank For Auditing and Assurance Services, 17e (Arens/Elder/Beasley)Test Bank For Auditing and Assurance Services, 17e (Arens/Elder/Beasley)Test Bank For Auditing and Assurance Services, 17e (Arens/Elder/Beasley)Test Bank F...
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 ActDiff: Easy
, 2
Objective: LO 1-1
AACSB: Reflective thinking
skillsTopic: 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
, 3
made by management Communications Observation
N N Y
ANSWER: C
Terms: Audit
evidenceDiff:
Moderate
Objective: LO 1-1
AACSB: Reflective thinking skills
, 4
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
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