Exam 1: CPA Auditing and Attestation Exam

During an engagement to review the financial statements of a nonissuer an accountant becomes aware of a material departure from GAAP. If the accountant decides to modify the standard review report because management will not revise the financial statements, the accountant should:

(Multiple Choice)

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Question 881

An auditor's engagement letter most likely would include a statement that:

(Multiple Choice)

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Question 882

Should an auditor communicate the following matters to those charged with governance of a public entity?

(Multiple Choice)

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Question 883

Which of the following procedures would an auditor most likely perform to verify management's assertion of completeness?

(Multiple Choice)

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Question 884

In identifying matters for communication with those charged with governance, an auditor most likely would ask management whether:

(Multiple Choice)

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Question 885

This question presents independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue. Select as the best answer for this item, the action the auditor normally would take. The types of opinions in List A 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 In auditing the long-term investments account, an auditor is unable to obtain audited financial statements for an investee located in a foreign country. The auditor concludes that sufficient appropriate audit evidence regarding this investment cannot be obtained. List A Types of Options

(Multiple Choice)

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Question 886

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

(Multiple Choice)

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Question 887

An auditor should disclose the substantive reasons for expressing an adverse opinion in an explanatory paragraph:

(Multiple Choice)

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Question 888

When assessing the internal auditors' competence, the independent CPA should obtain information about the:

(Multiple Choice)

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Question 889

The primary responsibility of a bank acting as registrar of capital stock is to:

(Multiple Choice)

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Question 890

Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities?

(Multiple Choice)

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Question 891

The following explanatory paragraph was included in an auditor's report to indicate a lack of consistency: "As discussed in note T to the financial statements, the company changed its method of computing depreciation in X0." How should the auditor report on this matter if the auditor concurred with the change? Type of Location of opinion explanatory paragraph.

(Multiple Choice)

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Question 892

An auditor is selecting vouchers for testing an entity's internal control activities related to the proper approval of vouchers before checks are prepared. The auditor is matching random numbers with voucher numbers to determine which vouchers to inspect. If a random number matches a voided voucher, that voucher ordinarily would be replaced by another voucher in the random sample if the voided voucher:

(Multiple Choice)

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Question 893

An advantage of using systems flowcharts to document information about internal control instead of using internal control questionnaires is that systems flowcharts:

(Multiple Choice)

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Question 894

Which of the following most likely would be detected by an auditor's review of a client's sales cut-off?

(Multiple Choice)

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Question 895

An auditor is engaged to report on selected financial data that are included in a client-prepared document containing audited financial statements. Under these circumstances, the report on the selected data should:

(Multiple Choice)

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Question 896

Prior to commencing field work, an auditor usually discusses the general audit strategy with the client's management. Which of the following details do management and the auditor usually agree upon at this time?

(Multiple Choice)

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Question 897

With respect to the audit of a nonissuer, significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's management and those charged with governance because they represent:

(Multiple Choice)

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Question 898

Which of the following is a professional engagement that a CPA may perform to provide assurance on a system's reliability?

(Multiple Choice)

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Question 899

Prospective financial information presented in the format of historical financial statements that omit either gross profit or net income is deemed to be a:

(Multiple Choice)

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Question 900

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Exam 1: CPA Auditing and Attestation Exam

During an engagement to review the financial statements of a nonissuer an accountant becomes aware of a material departure from GAAP. If the accountant decides to modify the standard review report because management will not revise the financial statements, the accountant should:

An auditor's engagement letter most likely would include a statement that:

Should an auditor communicate the following matters to those charged with governance of a public entity?

Which of the following procedures would an auditor most likely perform to verify management's assertion of completeness?

In identifying matters for communication with those charged with governance, an auditor most likely would ask management whether:

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

An auditor should disclose the substantive reasons for expressing an adverse opinion in an explanatory paragraph:

When assessing the internal auditors' competence, the independent CPA should obtain information about the:

The primary responsibility of a bank acting as registrar of capital stock is to:

Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities?

An advantage of using systems flowcharts to document information about internal control instead of using internal control questionnaires is that systems flowcharts:

Which of the following most likely would be detected by an auditor's review of a client's sales cut-off?

An auditor is engaged to report on selected financial data that are included in a client-prepared document containing audited financial statements. Under these circumstances, the report on the selected data should:

Prior to commencing field work, an auditor usually discusses the general audit strategy with the client's management. Which of the following details do management and the auditor usually agree upon at this time?

With respect to the audit of a nonissuer, significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's management and those charged with governance because they represent:

Which of the following is a professional engagement that a CPA may perform to provide assurance on a system's reliability?

Prospective financial information presented in the format of historical financial statements that omit either gross profit or net income is deemed to be a:

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