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Test Bank Auditing and Assurance Services, 17e Arens Elder Beasley

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Test Bank Auditing and Assurance Services, 17e Arens Elder Beasley Chapter 1 The Demand for Audit and Other Assurance Services 1.1 Learning Objective 1-1 1) In the auditing process, A) the types and amounts of evidence r ...

Test Bank Auditing and Assurance Services, 17e Arens Elder Beasley Chapter 1 The Demand for Audit and Other Assurance Services 1.1 Learning Objective 1-1 1) In the auditing process, A) the types and amounts of evidence remain constant from audit to audit. B) the criteria for evaluating information will not vary depending on the information being audited. 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. Answer: C Terms: Audit process Difficulty: Moderate Objective: LO 1-1 AACSB: Reflective thinking 2) Which of the following is considered audit evidence? A) Oral statements made by management Written Communications Auditor Observations Y N N B) Oral statements made by management Written Communications Auditor Observations N Y Y C) Oral statements made by management Written Communications Auditor Observations Y Y Y D) Oral statements made by management Written Communications Auditor Observations N N Y Answer: C Terms: Audit evidence Difficulty: Easy Objective: LO 1-1 AACSB: Reflective thinking VERIFIEDBRAINBOOSTER VERIFIEDBRAINBOOSTER 2 Copyright © 2020 Pearson Education, Inc. 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) C) Internal Revenue Code (IRC) D) all of the above Answer: D Terms: Criteria by which an auditor evaluates information Difficulty: Moderate Objective: LO 1-1 AACSB: Reflective thinking 4) Auditors do not provide which of the following? 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 Objective: LO 1-1 AACSB: Reflective thinking 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. Answer: D Terms: Definition of auditing Difficulty: Moderate Objective: LO 1-1 AACSB: Reflective thinking.

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