Auditing Chapter 1 Solutions manual
Auditing, 12e (Arens)
Chapter 1 The Demand for an Auditing and Assurance Profession
1.1 Identify the components of an audit and explain why there is a demand for audits
1) Which of the following illustrates the definition of auditing with respect to the evidence analysis process?
A) accumulation and evaluation of evidence about balance sheet accounts
B) learning about different types of computing technology, such as mainframes
C) writing an operational audit report that is tailored to the client's situation
D) making sure that the auditor is competent and understands evidence gathering
Answer: A
Diff: 1 Type: MC Page Ref: 5
Learning Obj.: 1-1 Identify the components of an audit and explain why there is a demand for audits
2) Auditing should be done by a qualified
A) chartered accountant.
B) certified management accountant.
C) competent and independent person.
D) professional accountant.
Answer: C
Diff: 2 Type: MC Page Ref: 5
Learning Obj.: 1-1 Identify the components of an audit and explain why there is a demand for audits
3) Which of the following illustrates the definition of auditing with respect to the reporting process?
A) accumulation and evaluation of evidence about balance sheet accounts
B) reporting on the degree of correspondence between financial statements and ASPE
C) writing an operational audit report that is tailored to the client's situation
D) making sure that the auditor is competent and understands evidence gathering
Answer: B
Diff: 2 Type: MC Page Ref: 5
Learning Obj.: 1-1 Identify the components of an audit and explain why there is a demand for audits
4) In the audit of historical financial statements by PA firms, the criteria used are
A) generally accepted auditing standards.
B) generally accepted accounting principles.
C) regulations of the Canada Revenue Agency.
D) regulations of the provincial securities commissions.
Answer: B
Diff: 1 Type: MC Page Ref: 5
Learning Obj.: 1-1 Identify
Chapter 1 The Demand for an Auditing and Assurance Profession
1.1 Identify the components of an audit and explain why there is a demand for audits
1) Which of the following illustrates the definition of auditing with respect to the evidence analysis process?
A) accumulation and evaluation of evidence about balance sheet accounts
B) learning about different types of computing technology, such as mainframes
C) writing an operational audit report that is tailored to the client's situation
D) making sure that the auditor is competent and understands evidence gathering
Answer: A
Diff: 1 Type: MC Page Ref: 5
Learning Obj.: 1-1 Identify the components of an audit and explain why there is a demand for audits
2) Auditing should be done by a qualified
A) chartered accountant.
B) certified management accountant.
C) competent and independent person.
D) professional accountant.
Answer: C
Diff: 2 Type: MC Page Ref: 5
Learning Obj.: 1-1 Identify the components of an audit and explain why there is a demand for audits
3) Which of the following illustrates the definition of auditing with respect to the reporting process?
A) accumulation and evaluation of evidence about balance sheet accounts
B) reporting on the degree of correspondence between financial statements and ASPE
C) writing an operational audit report that is tailored to the client's situation
D) making sure that the auditor is competent and understands evidence gathering
Answer: B
Diff: 2 Type: MC Page Ref: 5
Learning Obj.: 1-1 Identify the components of an audit and explain why there is a demand for audits
4) In the audit of historical financial statements by PA firms, the criteria used are
A) generally accepted auditing standards.
B) generally accepted accounting principles.
C) regulations of the Canada Revenue Agency.
D) regulations of the provincial securities commissions.
Answer: B
Diff: 1 Type: MC Page Ref: 5
Learning Obj.: 1-1 Identify