Exam 1: CPA Auditing and Attestation Exam

Tech Company has disclosed an uncertainty due to pending litigation. The auditor's decision to issue a qualified opinion rather than an unqualified opinion most likely would be determined by the:

Which of the following would an auditor most likely use in determining the auditor's preliminary judgment about materiality?

An audit supervisor reviewed the work performed by the staff to determine if the audit was adequately performed. The supervisor accomplished this by primarily reviewing which of the following?

Which of the following presumptions does not relate to the reliability of audit evidence?

Which of the following auditing procedures most likely would assist an auditor in identifying related party transactions?

Which of the following procedures would an auditor most likely perform to test controls relating to management's assertion about the completeness of cash receipts for cash sales at a retail outlet?

Management of Hill Company has decided not to account for a material transaction in accordance with the provisions of an FASB Standard. In setting forth its reasons in a note to the financial statements, management has clearly demonstrated that due to unusual circumstances the financial statements presented in accordance with the FASB Standard would be misleading. The auditor's report should include a separate explanatory paragraph and contain a(an):

Which of the following internal controls most likely would assure that all billed sales are correctly posted to the accounts receivable ledger?

Which of the following describes how the objective of a review of financial statements differs from the objective of a compilation engagement?

For which of the following judgments may an independent auditor share responsibility with an entity's internal auditor who is assessed to be both competent and objective?

Which of the following circumstances most likely would cause an auditor to consider whether material misstatements exist in an entity's financial statements?

When single-year financial statements are presented, an auditor ordinarily would express an unqualified opinion in an unmodified report if the:

Which of the following audit procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?

Which of the following statements is not true regarding the auditor's responsibility for subsequent events?

Which of the following procedures would an auditor least likely perform before the balance sheet date?

In which of the following circumstances is substantive testing of accounts receivable before the balance sheet date most appropriate?

An entity with a large volume of customer remittances by mail could most likely reduce the risk of employee misappropriation of cash by using:

Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should not be accepted?

At the conclusion of an audit, an auditor is reviewing the evidence gathered in support of the financial statements. With regard to the valuation of inventory, the auditor concludes that the evidence obtained is not sufficient to support management's representations. Which of the following actions is the auditor most likely to take?

Which of the following representations should not be included in a report on internal control related matters noted in an audit of a nonissuer?