Exam 1: CPA Auditing and Attestation Exam

An auditor may decide not to test controls related to certain assertions because the auditor believes:

The permanent (continuing) file of audit documentation most likely would include copies of the:

An auditor's report contains the following sentences: We did not audit the financial statements of JK Co., a wholly owned subsidiary, which statements reflect total assets and revenues constituting 17 percent and 19 percent, respectively, of the related consolidated totals. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for JK Co., is based solely on the report of the other auditors. These sentences:

Which of the following procedures would an auditor most likely perform in auditing the statement of cash flows?

Performing inquiry and analytical procedures is the primary basis for an accountant to issue a:

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

An auditor issued an audit report that was dual dated for a subsequent event occurring after the original date of the auditor's report but before issuance of the related financial statements. The auditor's responsibility for events occurring subsequent to the original report date was:

Which of the following events occurring after the issuance of an auditor's report most likely would cause the auditor to make further inquiries about the previously issued financial statements?

The risk of incorrect acceptance and the likelihood of assessing control risk too low relate to the:

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

Which of the following best describes a CPA's engagement to report on a nonissuer's internal control over financial reporting?

For a particular entity's financial statements to be presented fairly in conformity with generally accepted accounting principles, it is not required that the principles selected:

Which of the following audit procedures would an auditor most likely perform to test controls relating to management's assertion concerning the completeness of sales transactions?

An auditor confirmed accounts receivable as of an interim date, and all confirmations were returned and appeared reasonable. Which of the following additional procedures most likely should be performed at year-end?

In determining the effectiveness of an entity's internal controls relating to the occurrence assertion for payroll transactions, an auditor most likely would inquire about and:

For certain controls, such as segregation of duties, documentary evidence may not exist. An auditor would most likely test the controls by:

How would increases in tolerable misstatement and assessed level of control risk affect the sample size in a substantive test of details?

Audit evidence concerning segregation of duties ordinarily is best obtained by:

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. During our audit we discovered evidence of the company's failure to safeguard inventory from loss, damage, and misappropriation.

When a client engages in transactions involving derivatives, the auditor should: