Exam 1: CPA Auditing and Attestation Exam

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. Indicate in the space provided below whether this information agrees with your records. If there are exceptions, please provide any information that will assist the auditor in reconciling the difference.

For effective internal accounting control, the accounts payable department should compare the information on each vendor's invoice with the:

When management's assertion about the effectiveness of a nonissuer's internal control is presented in a representation letter that will not accompany the CPA's report:

Which of the following procedures most likely would be considered a weakness in an entity's internal controls over payroll?

An accountant's standard report on a compilation of a projection should not include a statement that:

An auditor's communication of internal control related matters noted in an audit usually should be addressed to:

An accountant compiles unaudited financial statements that are not expected to be used by a third party. The accountant may decline to issue a compilation report provided:

A successor auditor most likely would make specific inquiries of the predecessor auditor regarding:

Which of the following statements concerning an auditor's communication of significant deficiencies identified during the audit of a nonissuer is correct?

Which of the following statements is generally correct about the reliability of audit evidence?

Which of the following procedures would a CPA most likely perform in the planning stage of a financial statement audit?

The auditor should obtain sufficient knowledge of the client's information and communication system relevant to financial reporting to understand all of the following, except

Which of the following characteristics most likely would be an advantage of using classical variables sampling rather than probability-proportional-to-size (PPS) sampling?

Internal control includes which of the following components:

To determine whether internal control relative to the revenue cycle of a wholesaling entity is operating effectively in minimizing the failure to prepare sales invoices, an auditor most likely would select a sample of transactions from the population represented by the:

An auditor's report would be designated a special report when it is issued in connection with:

Which of the following internal controls would an entity most likely use to assist in satisfying the completeness assertion related to long-term investments?

To be effective, analytical procedures in the overall review stage of an audit engagement should be performed by:

Which of the following statements most likely represents a disadvantage for an entity that keeps microcomputer-prepared data files rather than manually prepared files?

An attest engagement is one in which a CPA is engaged to: