Exam 1: CPA Auditing and Attestation Exam

Before accepting an engagement to audit a new client, a CPA is required to obtain:

An accountant's report on a review of pro forma financial information should include a:

In which case would the accountant be least likely to perform a review of interim financial information under PCAOB (auditing) standards?

Which of the following statements reflects an auditor's responsibility for detecting errors and fraud?

Reporting standards for financial audits under Government Auditing Standards (the Yellow Book) differ from reporting under generally accepted auditing standards in that Government Auditing Standards require the auditor to:

An auditor was unable to obtain sufficient appropriate audit evidence concerning certain transactions due to an inadequacy in the entity's accounting records. The auditor would choose between issuing a(an):

Which of the following procedures is usually performed by the accountant in a review engagement of a nonissuer?

Financial information is presented in a printed form that prescribes the wording of the independent auditor's report. The form is not acceptable to the auditor because the form calls for statements that are inconsistent with the auditor's responsibility. Under these circumstances, the auditor most likely would:

Which of the following statements is correct regarding a review engagement of a nonissuer's financial statements performed in accordance with the Statements on Standards for Accounting and Review Services (SSARS)?

During an audit an internal auditor may provide direct assistance to an independent CPA in:

For an entity that does financial statements generally would not refer to:

In assessing control risk for purchases, an auditor vouches a sample of entries in the voucher register to the supporting documents. Which assertion would this test of controls most likely support?

Which of the following statements is correct concerning an auditor's required communication with those charged with governance?

Which of the following is not a comprehensive basis of accounting other than generally accepted accounting principles?

Which of the following statements about performing tests of controls to support a lower level of control risk is not true?

An auditor would express an unqualified opinion with an explanatory paragraph added to the auditor's report for:

In its annual report to shareholders, Lake Co. included a separate management report that contained additional information. Lake's auditor is expressing an unqualified opinion on Lake's financial statements but has not been engaged to examine and report on this additional information. What is the auditor's responsibility concerning such a report?

To obtain audit evidence about control risk, an auditor ordinarily selects tests from a variety of techniques, including:

Management's attitude toward aggressive financial reporting and its emphasis on meeting projected profit goals most likely would significantly influence an entity's control environment when:

Which of the following circumstances would most likely cause an auditor to suspect that material misstatements arising from fraud exist in a client's financial statements?