Exam 1: CPA Auditing and Attestation Exam

An auditor uses the knowledge provided by the understanding of internal control and the final assessed risk of material misstatement primarily to determine the nature, timing, and extent of the:

(Multiple Choice)

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Question 21

What is an auditor's responsibility for supplementary information required by the GASB that is placed outside the basic financial statements?

(Multiple Choice)

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Question 22

If management (of a governmental body) declines to present supplementary information required by the Governmental Accounting Standards Board (GASB), the auditor should issue a(an):

(Multiple Choice)

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Question 23

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. It is our opinion that the possible liability to the company in this proceeding is nominal in amount.

(Multiple Choice)

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Question 24

This question presents independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue. Select as the best answer for this item, the action the auditor normally would take. The types of opinions in List A may be selected once, more than once, or not at all. Assume: - The auditor is independent. - The auditor previously expressed an unqualified opinion on the prior year's financial statements. - Only single-year (not comparative) statements are presented for the current year. - The conditions for an unqualified opinion exist unless contradicted in the factual situations. - The conditions stated in the factual situations are material. - No report modifications are to be made except in response to the factual situation. Item to Be Answered An entity issues financial statements that present financial position and results of operations but omits the related statement of cash flows. Management discloses in the notes to the financial statements that it does not believe the statement of cash flows to be a useful financial statement. List A Types of Options

(Multiple Choice)

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Question 25

A limitation on the scope of an auditor's examination sufficient to preclude an unqualified opinion will always result when management:

(Multiple Choice)

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Question 26

An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that all:

(Multiple Choice)

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Question 27

Significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's management and those charged with governance because they represent:

(Multiple Choice)

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Question 28

If an accounting change has no material effect on the financial statements in the current year, but the change is reasonably certain to have a material effect in later years, the change should be:

(Multiple Choice)

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Question 29

Which of the following relatively small misstatements most likely could have a material effect on an entity's financial statements?

(Multiple Choice)

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Question 30

The objective of a review of interim financial information of a public entity is to provide an accountant with a basis for reporting whether:

(Multiple Choice)

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Question 31

A client's lawyer is unable to form a conclusion about the likelihood of an unfavorable outcome of pending litigation because of inherent uncertainties. If the litigation's effect on the client's financial statements could be material but it is properly disclosed in the financial statements, the auditor most likely would:

(Multiple Choice)

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Question 32

Which of the following is not true about accounting estimates?

(Multiple Choice)

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Question 33

Which of the following is the most effective control activity to detect vouchers that were prepared for the payment of goods that were not received?

(Multiple Choice)

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Question 34

An auditor uses the assessed level of control risk to:

(Multiple Choice)

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Question 35

When conducting field work for a physical inventory, an auditor cannot perform which of the following steps using a generalized audit software package?

(Multiple Choice)

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Question 36

Which of the following procedures would an auditor least likely perform in planning a financial statement audit?

(Multiple Choice)

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Question 37

While auditing the financial statements of a nonissuer, a CPA was requested to change the engagement to a review in accordance with Statements on Standards for Accounting and Review Services (SSARS) because of a scope limitation. If the CPA believes the client's request is reasonable, the CPA's review report should:

(Multiple Choice)

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Question 38

An accountant has compiled the financial statements of a nonissuer but declines to issue a compilation report. This is an example of:

(Multiple Choice)

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Question 39

The negative request form of accounts receivable confirmation is useful particularly when the:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 1050

Exam 1: CPA Auditing and Attestation Exam

An auditor uses the knowledge provided by the understanding of internal control and the final assessed risk of material misstatement primarily to determine the nature, timing, and extent of the:

What is an auditor's responsibility for supplementary information required by the GASB that is placed outside the basic financial statements?

If management (of a governmental body) declines to present supplementary information required by the Governmental Accounting Standards Board (GASB), the auditor should issue a(an):

A limitation on the scope of an auditor's examination sufficient to preclude an unqualified opinion will always result when management:

An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that all:

Significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's management and those charged with governance because they represent:

If an accounting change has no material effect on the financial statements in the current year, but the change is reasonably certain to have a material effect in later years, the change should be:

Which of the following relatively small misstatements most likely could have a material effect on an entity's financial statements?

The objective of a review of interim financial information of a public entity is to provide an accountant with a basis for reporting whether:

Which of the following is not true about accounting estimates?

Which of the following is the most effective control activity to detect vouchers that were prepared for the payment of goods that were not received?

An auditor uses the assessed level of control risk to:

When conducting field work for a physical inventory, an auditor cannot perform which of the following steps using a generalized audit software package?

Which of the following procedures would an auditor least likely perform in planning a financial statement audit?

An accountant has compiled the financial statements of a nonissuer but declines to issue a compilation report. This is an example of:

The negative request form of accounts receivable confirmation is useful particularly when the:

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