Chapter 1 the Assurance Services Market

Auditing and Assurance Services, 15e, Global Edition (Arens)

Chapter 1 The Assurance Services Market

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...