Exam 1: CPA Auditing and Attestation Exam

A CPA's report on agreed-upon procedures related to management's assertion about an entity's compliance with specified requirements should contain:

An auditor observes the mailing of monthly statements to a client's customers and reviews evidence of follow-up on errors reported by the customers. This test of controls most likely is performed to support management's financial statement assertions of:

For a nonissuer, a control deficiency would be considered a significant deficiency when the likelihood and magnitude of potential financial statement misstatements are:

In auditing accounts payable, an auditor's procedures most likely would focus primarily on management's assertion of:

In establishing the existence and ownership of long-term investments in the form of publicly-traded stock, an auditor most likely would inspect the securities or:

An auditor has previously expressed a qualified opinion on the financial statements of a prior period because of a departure from generally accepted accounting principles. The prior-period financial statements are restated in the current period to conform with generally accepted accounting principles. The auditor's updated report on the prior-period financial statements should:

An accountant should perform analytical procedures during an engagement to:

Dunn, CPA, is auditing the financial statements of Taft Co. Taft uses Quick Service Center (QSC) to process its payroll. Price, CPA, is expressing an opinion on a description of the controls placed in operation at QSC regarding the processing of its customers' payroll transactions. Dunn expects to consider the effects of Price's report on the Taft engagement. Price's report should contain a (an):

In performing an attest engagement, a CPA typically:

Which of the following statements concerning audit evidence is correct?

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

Which of the following is true about the term "likely misstatement?"

An auditor's purpose in reviewing credit ratings of customers with delinquent accounts receivable most likely is to obtain evidence concerning management's assertions about:

A client maintains perpetual inventory records in both quantities and dollars. If the assessed level of control risk is high, an auditor would probably:

Which of the following procedures would an auditor ordinarily perform first in evaluating the reasonableness of management's accounting estimates?

The auditor with final responsibility for an engagement and one of the assistants have a difference of opinion about the results of an auditing procedure. If the assistant believes it is necessary to be disassociated from the matter's resolution, the CPA firm's procedures should enable the assistant to:

Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

The third standard of fieldwork states that the auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit. The appropriate audit evidence required by this standard may be obtained, in part, through:

When an independent CPA is associated with the financial statements of a publicly held entity but has not audited or reviewed such statements, the appropriate form of report to be issued must include a(an):

In which of the following circumstances would the use of the negative form of accounts receivable confirmation most likely be justified?