Exam 1: CPA Auditing and Attestation Exam

An auditor discovered that a client's accounts receivable turnover is substantially lower for the current year than for the prior year. This may indicate that:

The senior auditor responsible for coordinating the fieldwork usually schedules a pre-audit conference with the audit team primarily to:

Jewel, CPA, audited Infinite Co.'s prior-year financial statements. These statements are presented with those of the current year for comparative purposes without Jewel's auditor's report, which expressed a qualified opinion. In drafting the current year's auditor's report, Crain, CPA, the successor auditor, should:

When an accountant is engaged to compile a nonissuer's financial statements that omit substantially all disclosures required by GAAP, the accountant should indicate in the compilation report that the financial statements are:

Which of the following factors would most likely be considered an inherent limitation to an entity's internal control?

In planning the audit, the auditor obtains a sufficient understanding of the existing internal control. Which one of the following is not among the auditor's primary objectives for obtaining such knowledge?

Equipment acquisitions that are misclassified as maintenance expense most likely would be detected by an internal control activity that provides for:

The use of the ratio estimation sampling technique is most effective when:

Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement?

Proper authorization of write-offs of uncollectible accounts should be approved in which of the following departments?

Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional manipulation of financial statements?

To obtain assurance that all inventory items in a client's inventory listing are valid, an auditor most likely would trace:

Which of the following cash transfers results in a misstatement of cash at December 31, 20X1?

Which of the following controls would an entity most likely use in safeguarding against the loss of marketable securities?

Which of the following procedures represents a weakness in internal controls for payroll?

When a company's stock record books are maintained by an outside registrar or transfer agent, the auditor should obtain confirmation from the registrar or transfer agent concerning the:

When unaudited financial statements of a nonissuer are presented in comparative form with audited financial statements in the subsequent year, the unaudited financial statements should be clearly marked to indicate their status and:

An accountant has been asked to issue a review report on the balance sheet of a nonissuer without reporting on the related statements of income, retained earnings, and cash flows. The accountant may issue the requested review report only if:

In assessing the objectivity of internal auditors, an independent auditor should:

Helpful Co., a nonprofit entity, prepared its financial statements on an accounting basis prescribed by a regulatory agency solely for filing with that agency. Green audited the financial statements in accordance with generally accepted auditing standards and concluded that the financial statements were fairly presented on the prescribed basis. Green should issue a: