Exam 1: CPA Auditing and Attestation Exam

After obtaining an understanding of the entity and its environment, including its internal control, an auditor decided to perform tests of controls. This is likely because:

(Multiple Choice)

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Question 641

This question presents independent factual situations an auditor might encounter in conducting an audit. List B represents the report modifications (if any) that would be necessary. Select as the best answer for each item, the action the auditor normally would take. The report modifications in List B may be selected once, more than once, or not at all. Assume: - The auditor is independent. - The auditor previously expressed an unqualified opinion on the prior year's financial statements. - Only single-year (not comparative) statements are presented for the current year. - The conditions for an unqualified opinion exist unless contradicted in the factual situations. - The conditions stated in the factual situations are material. - No report modifications are to be made except in response to the factual situation. Item to Be Answered An entity discloses in the notes to the financial statements certain lease obligations. The auditor believes that the failure to capitalize these leases is a departure from generally accepted accounting principles. List B Report Modifications

(Multiple Choice)

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Question 642

Which of the following is not a required procedure in an engagement to review the interim financial information of a publicly held entity?

(Multiple Choice)

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Question 643

Which of the following risks may be assessed in nonquantitative terms?

(Multiple Choice)

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Question 644

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. Blank checks are maintained in an unlocked cabinet along with the check-signing machine. Blank checks and the check-signing machine should be locked in separate locations to prevent the embezzlement of funds.

(Multiple Choice)

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Question 645

Which of the following Explanation: s most likely would satisfy an auditor who questions management about significant debits to the accumulated depreciation accounts?

(Multiple Choice)

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Question 646

Which best describes the documentation completion date?

(Multiple Choice)

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Question 647

Park, CPA, was engaged to audit the financial statements of Tech Co., a new client, for the year ended December 31, 20X3. Park obtained sufficient audit evidence for all of Tech's financial statement items except Tech's opening inventory. Due to inadequate financial records, Park could not verify Tech's January 1, 20X3, inventory balances. Park's opinion on Tech's 20X3 financial statements most likely will be:

(Multiple Choice)

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Question 648

An auditor usually tests the reasonableness of dividend income from investments in publicly-held companies by computing the amounts that should have been received by referring to:

(Multiple Choice)

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Question 649

An accountant has been engaged to review a nonissuer's financial statements that contain several departures from GAAP. If the financial statements are not revised and modification of the standard review report is not adequate to indicate the deficiencies, the accountant should:

(Multiple Choice)

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Question 650

An auditor who discovers that client employees have committed an illegal act that has a material effect on the client's financial statements most likely would withdraw from the engagement if:

(Multiple Choice)

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Question 651

Which of the following is not an attestation standard?

(Multiple Choice)

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Question 652

Which of the following controls most likely would give the greatest assurance that securities held as investments are safeguarded?

(Multiple Choice)

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Question 653

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

(Multiple Choice)

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Question 654

An auditor's risk assessment is based on the assumption that controls are operating effectively. Which of the following was not a step in making this assessment?

(Multiple Choice)

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Question 655

Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be conducted?

(Multiple Choice)

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Question 656

Which of the following is not an inquiry the auditor should make to identify the risks of material misstatement due to fraud?

(Multiple Choice)

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Question 657

If the objective of a test of details is to detect overstatements of sales, the auditor should trace transactions from the:

(Multiple Choice)

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Question 658

In an audit of an issuer, the auditor must provide an opinion on which of the following?

(Multiple Choice)

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Question 659

An auditor would least likely use computer software to:

(Multiple Choice)

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Question 660

Showing 641 - 660 of 1050

Exam 1: CPA Auditing and Attestation Exam

After obtaining an understanding of the entity and its environment, including its internal control, an auditor decided to perform tests of controls. This is likely because:

Which of the following is not a required procedure in an engagement to review the interim financial information of a publicly held entity?

Which of the following risks may be assessed in nonquantitative terms?

Which of the following Explanation: s most likely would satisfy an auditor who questions management about significant debits to the accumulated depreciation accounts?

Which best describes the documentation completion date?

An auditor usually tests the reasonableness of dividend income from investments in publicly-held companies by computing the amounts that should have been received by referring to:

An accountant has been engaged to review a nonissuer's financial statements that contain several departures from GAAP. If the financial statements are not revised and modification of the standard review report is not adequate to indicate the deficiencies, the accountant should:

An auditor who discovers that client employees have committed an illegal act that has a material effect on the client's financial statements most likely would withdraw from the engagement if:

Which of the following is not an attestation standard?

Which of the following controls most likely would give the greatest assurance that securities held as investments are safeguarded?

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

An auditor's risk assessment is based on the assumption that controls are operating effectively. Which of the following was not a step in making this assessment?

Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be conducted?

Which of the following is not an inquiry the auditor should make to identify the risks of material misstatement due to fraud?

If the objective of a test of details is to detect overstatements of sales, the auditor should trace transactions from the:

In an audit of an issuer, the auditor must provide an opinion on which of the following?

An auditor would least likely use computer software to:

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