Exam 1: CPA Auditing and Attestation Exam

Information accompanying the basic financial statements in an auditor-submitted document should not include:

An auditor's purpose in reviewing credit ratings of customers with delinquent accounts receivable most likely is to obtain evidence concerning management's assertions about:

Management's emphasis on meeting projected profit goals most likely would significantly influence an entity's control environment when:

Stratified mean per unit (MPU) sampling is a statistical technique that may be more efficient than unstratified MPU because it usually:

Analytical procedures used in planning an audit should focus on:

Blue, CPA, has been asked to render an opinion on the application of accounting principles to a specific transaction by an entity that is audited by another CPA. Blue may accept this engagement, but should:

Which of the following strategies most likely could improve the response rate of the confirmation of accounts receivable?

An accountant's standard report on a review of the financial statements of a nonissuer should state that the accountant:

Property acquisitions that are misclassified as maintenance expense would most likely be detected by an internal accounting control system that provides for:

Which of the following evidence provides the greatest assurance of reliability?

Due to a scope limitation, an auditor disclaimed an opinion on the financial statements taken as a whole, but the auditor's report included a statement that the current asset portion of the entity's balance sheet was fairly stated. The inclusion of this statement is:

A purpose of a management representation letter is to reduce:

Which of the following best describes what is meant by the term generally accepted auditing standards?

Tests designed to detect purchases made before the end of the year that have been recorded in the subsequent year most likely would provide assurance about management's assertion regarding:

Which of the following procedures would an auditor most likely perform to obtain assurance that slowmoving and obsolete items included in inventories are properly identified?

Which of the following audit procedures is best for identifying unrecorded trade accounts payable?

Which of the following is a true statement regarding documentation requirements for analytical procedures?

Determining that proper amounts of depreciation are expensed provides assurance about management's assertion of:

Auditors try to identify predictable relationships when using analytical procedures. Relationships involving transactions from which of the following accounts most likely would yield the highest level of evidence?

This question will represent a statement, question, excerpt, or comment taken from various parts of an auditor's documentation file. Letter choices A-P represent a list of the likely sources of the statement, question, excerpt, or comment. Select, as the best answer for each item, the most likely source. Select only one source for each item. As discussed in Note 4 to the financial statements, the company experienced a net loss for the year ended July 31, 20XX, and is currently in default under substantially all of its debt agreements. In addition, on September 25, 20XX, the company filed a prenegotiated voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. These matters raise substantial doubt about the company's ability to continue as a going concern.