Exam 1: CPA Auditing and Attestation Exam

Which of the following is true regarding significant deficiencies in internal control?

Which of the following inquiry or analytical procedures ordinarily is performed in an engagement to review a nonissuer's financial statements?

Which of the following internal controls most likely would be used to maintain accurate inventory records?

On receiving a client's bank cutoff statement, an auditor most likely would trace:

Which of the following controls would a company most likely use to safeguard marketable securities when an independent trust agent is not employed?

To measure how effectively an entity employs its resources, an auditor calculates inventory turnover by dividing average inventory into:

The primary reason an auditor requests letters of inquiry be sent to a client's attorneys is to provide the auditor with:

In which case might an auditor of an issuer render a qualified opinion on internal control?

Which of the following procedures most likely would not be an internal control designed to reduce the risk of errors in the billing process?

An accountant may accept an engagement to apply agreed-upon procedures to prospective financial statements provided the:

In determining the sample size for a test of controls, an auditor should consider the likely rate of deviations, the allowable risk of assessing control risk too low, and the:

As the acceptable level of detection risk decreases, the assurance directly provided from:

Which of the following events occurring after the issuance of an auditor's report most likely would cause the auditor to make further inquiries about the previously issued financial statements?

The ultimate purpose of assessing control risk is to contribute to the auditor's evaluation of the:

Davidson, CPA, is performing a review under auditing standards of Gold's interim financial information. As part of planning, Davidson reads the audit documentation from the preceding year's annual audit. Which of the following is least likely to affect Davidson's review?

In obtaining an understanding of an entity's internal control, an auditor is required to obtain knowledge about the:

In auditing payroll, an auditor most likely would:

Analytical procedures performed in the overall review stage of an audit suggest that several accounts have unexpected relationships. The results of these procedures most likely would indicate that:

An auditor decides to issue a qualified opinion on an entity's financial statements because a major inadequacy in its computerized accounting records prevents the auditor from applying necessary procedures. The opinion paragraph of the auditor's report should state that the qualification pertains to:

The authoritative body designated to promulgate standards concerning an accountant's association with unaudited financial statements of an entity that is not required to file financial statements with an agency regulating the issuance of the entity's securities is the: