Exam 1: CPA Auditing and Attestation Exam

Which of the following auditing procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?

To which of the following matters would materiality limits not apply when obtaining written client representations?

The information below was taken from the bank transfer schedule prepared during the audit of Fox Co.'s financial statements for the year ended December 31, 20X1. Assume all checks are dated and issued on December 30, 20X1. Which of the following checks might indicate kiting?

A CPA firm would be reasonably assured of meeting its responsibility to provide services that conform with professional standards by:

The primary objective of procedures performed to obtain an understanding of the entity and its environment is to provide an auditor with:

Restrictions imposed by a retail entity that is a new client prevent an auditor from observing any physical inventories. These inventories account for 40% of the entity's assets. Alternative auditing procedures cannot be applied due to the nature of the entity's records. Under these circumstances, the auditor should express a(an):

In testing plant and equipment balances, an auditor examines new additions listed on an analysis of plant and equipment. This procedure most likely obtains evidence concerning management's assertion of:

An accountant has compiled the financial statements of a nonissuer in accordance with Statements on Standards for Accounting and Review Services (SSARS). The financial statements are expected to be used by a third party. Does SSARS require that the compilation report be printed on the accountant's letterhead and that the report be manually signed by the accountant?

When an independent accountant's report based on a review of interim financial information is presented in a registration statement, a prospectus should include a statement about the accountant's involvement. This statement should clarify that the:

Which of the following is a management control method that most likely could improve management's ability to supervise company activities effectively?

Which of the following categories is included in generally accepted auditing standards?

An auditor has been asked to report on the balance sheet of Kane Company but not on the other basic financial statements. The auditor will have access to all information underlying the basic financial statements. Under these circumstances, the auditor:

If a client will not permit inquiry of outside legal counsel, the auditor's report ordinarily will contain a(an):

An auditor selected items for test counts while observing a client's physical inventory. The auditor then traced the test counts to the client's inventory listing. This procedure most likely obtained evidence concerning management's assertion of:

Which of the following reporting options is least likely with regard to supplementary information that is required by GAAP?

The standard report issued by an accountant after reviewing the financial statements of a nonissuer states that:

An examination of a financial forecast is a professional service that involves:

Under which of the following circumstances would the use of the blank form of confirmations of accounts receivable most likely be preferable to positive confirmations?

An auditor most likely would extend substantive tests of payroll when:

In performing tests concerning the granting of stock options, an auditor should: