Exam 1: CPA Auditing and Attestation Exam

Which of the following factors would a CPA ordinarily consider in the planning stage of an audit engagement?

Which of the following should be included as a written representation from management?

Which of the following characteristics most likely would heighten an auditor's concern about the risk of material misstatement arising from fraudulent financial reporting?

This question will represent a statement, question, excerpt, or comment taken from various parts of an auditor's documentation file. Letter choices A-P represent a list of the likely sources of the statement, question, excerpt, or comment. Select, as the best answer for each item, the most likely source. Select only one source for each item. The company considers the decline in value of equity securities classified as available-for-sale to be temporary.

An auditor most likely would introduce test data into a computerized payroll system to test internal controls related to the:

Under which of the following circumstances would an auditor's expression of an unqualified opinion be inappropriate?

In parallel simulation, actual client data are reprocessed using an auditor software program. An advantage of using parallel simulation, instead of performing tests of controls without a computer, is that:

An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the controls leave no audit trail of documentary evidence, the auditor most likely will test the procedures by:

As a result of tests of controls, an auditor assesses control risk too high. This incorrect assessment most likely occurred because:

In auditing long-term bonds payable, an auditor most likely would:

Comparative financial statements include the financial statements of the prior year that were audited by a predecessor auditor whose report is not presented. If the predecessor's report was qualified, the successor should:

May an accountant accept an engagement to compile or review the financial statements of a not-for-profit entity if the accountant is unfamiliar with the specialized industry accounting principles, but plans to obtain the required level of knowledge before compiling or reviewing the financial statements?

Which of the following statements most likely represents a disadvantage for an entity that keeps microcomputer-prepared data files rather than manually prepared files?

Which of the following characteristics distinguishes computer processing from manual processing?

When an auditor tests a computerized accounting system, which of the following is true of the test data approach?

This question will represent a statement, question, excerpt, or comment taken from various parts of an auditor's documentation file. Letter choices A-P represent a list of the likely sources of the statement, question, excerpt, or comment. Select, as the best answer for each item, the most likely source. Select only one source for each item. The company has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.

To determine the sample size for a test of controls, an auditor should consider the tolerable deviation rate, the allowable risk of assessing control risk too low, and the:

Jones Retailing, a nonissuer, has asked Winters, CPA, to compile financial statements that omit substantially all disclosures required by generally accepted accounting principles. Winters may compile such financial statements provided the:

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

Which of the following documentation is not required for an audit in accordance with generally accepted auditing standards?