Audit Test Bank Ch 1 Auditing and Assurance Services, 14e (Arens)

Auditing and Assurance Services, 14e (Arens)
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