Exam 1: CPA Auditing and Attestation Exam

In the first audit of a new client, an auditor was able to extend auditing procedures to gather sufficient evidence about consistency. Under these circumstances, the auditor should:

How does an accountant make the following representations when issuing the standard report for the compilation of a nonissuer's financial statements?

When planning a sample for a substantive test of details, an auditor should consider tolerable misstatement for the sample. This consideration should:

In testing for unrecorded retirements of equipment, an auditor most likely would:

When qualifying an opinion because of an insufficiency of audit evidence, an auditor should refer to the situation in the:

Which of the following procedures should an auditor perform concerning litigation, claims, and assessments?

An auditor's analytical procedures most likely would be facilitated if the entity:

Which of the following statements is correct about the sample size in statistical sampling when testing internal controls?

Selected data pertaining to Lore Co. for the calendar year 20X4 is as follows: The accounts receivable turnover for 20X4 was 5.0 times. What were Lore's 20X4 net credit sales?

When an accountant compiles projected financial statements, the accountant's report should include a separate paragraph that:

Which of the following accounting services may an accountant perform without being required to issue a compilation or review report under the Statements on Standards for Accounting and Review Services?

Which of the following statements represents a quality control requirement under Government Auditing Standards?

After performing risk assessment procedures, an auditor decided not to perform tests of controls. The auditor most likely decided that:

Which of the following control activities is not usually performed in the vouchers payable department?

In obtaining an understanding of a manufacturing entity's internal control concerning inventory balances, an auditor most likely would:

What is an auditor's evaluation of a statistical sample for attributes when a test of 50 documents results in 3 deviations if tolerable rate is 7%, the expected population deviation rate is 5%, and the allowance for sampling risk is 2%.

Moore, CPA, has been asked to issue a review report on the balance sheet of Dover Co., a nonissuer. Moore will not be reporting on Dover's statements of income, retained earnings, and cash flows. Moore may issue the review report provided the:

Which of the following matters would an auditor most likely consider to be a significant deficiency in internal control to be communicated to management and those charged with governance?

Would the following factors ordinarily be considered in planning an audit engagement's personnel requirements?

An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to: