Exam 1: CPA Auditing and Attestation Exam

When an auditor expresses an adverse opinion, the opinion paragraph should include:

The responsibility to establish, maintain and monitor internal controls is that of the entity's:

An auditor most likely would review an entity's periodic accounting for the numerical sequence of shipping documents and invoices to support management's financial statement assertion of:

The monitoring component of internal control excludes:

If specific information comes to an auditor's attention that implies the existence of possible illegal acts that could have a material, but indirect effect on the financial statements, the auditor should next:

Which of the following is the primary reason that many auditors hesitate to use embedded audit modules?

An auditor's report on financial statements prepared in accordance with another comprehensive basis of accounting should include all of the following, except:

When an auditor believes there is substantial doubt about the ability of an entity to continue as a going concern, all of the following should be included in the audit documentation, except:

For audits of financial statements made in accordance with generally accepted auditing standards, the use of analytical procedures is required to some extent:

An accountant's compilation report on a financial forecast should include a statement that:

Which of the following circumstances most likely would cause an auditor to suspect an employee payroll fraud scheme?

In testing the existence assertion for an asset, an auditor ordinarily works from the:

Which of the following internal control procedures most likely would deter lapping of collections from customers?

A retailing entity uses the Internet to execute and record its purchase transactions. The entity's auditor recognizes that the documentation of details of transactions will be retained for only a short period of time. To compensate for this limitation, the auditor most likely would:

Hill, CPA, has been retained to audit the financial statements of Monday Co. Monday's predecessor auditor was Post, CPA, who has been notified by Monday that Post's services have been terminated. Under these circumstances, which party should initiate the communications between Hill and Post?

Which of the following is not part of obtaining an understanding of internal control?

The acceptable level of detection risk is inversely related to the:

When unaudited financial statements are presented in comparative form with audited financial statements in a document filed with the Securities and Exchange Commission, such statements should be:

The sampling unit in a test of controls pertaining to the existence of payroll transactions ordinarily is a (an):

Which of the following statements is not true of the test data approach to testing an accounting system?