Exam 1: CPA Auditing and Attestation Exam

Which of the following statements extracted from a client's lawyer's letter concerning litigation, claims, and assessments most likely would cause the auditor to request clarification?

(Multiple Choice)

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Question 1021

Which of the following statements describes why a properly designed and executed audit may not detect a material misstatement due to fraud?

(Multiple Choice)

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Question 1022

Which of the following statements about internal control is correct?

(Multiple Choice)

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Question 1023

In an audit of financial statements, an auditor's primary consideration regarding internal control is whether the control:

(Multiple Choice)

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Question 1024

Would the following factors ordinarily be considered in planning an audit engagement's personnel requirements?

(Multiple Choice)

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Question 1025

North Co., a privately-held entity, asked its tax accountant, King, a CPA in public practice, to prepare North's interim financial statements on King's microcomputer when King prepared North's quarterly tax return. King should not submit these financial statements to North unless, as a minimum, King complies with the provisions of:

(Multiple Choice)

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Question 1026

An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. If the entity's disclosures concerning this matter are adequate, the audit report may include a(an):

(Multiple Choice)

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Question 1027

When an auditor concludes there is substantial doubt about a continuing audit client's ability to continue as a going concern for a reasonable period of time, the auditor's responsibility is to:

(Multiple Choice)

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Question 1028

Green, CPA, concludes that there is substantial doubt about JKL Co.'s ability to continue as a going concern. If JKL's financial statements adequately disclose its financial difficulties, Green's auditor's report should:

(Multiple Choice)

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Question 1029

Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal controls in the revenue cycle?

(Multiple Choice)

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Question 1030

An auditor who wishes to capture an entity's data as transactions are processed and continuously test the entity's computerized information system most likely would use which of the following techniques?

(Multiple Choice)

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Question 1031

An accountant who reviews the financial statements of a nonissuer should issue a report stating that a review:

(Multiple Choice)

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Question 1032

Baker, CPA, was engaged to review the financial statements of Hall Company, a nonissuer. Evidence came to Baker's attention that indicated substantial doubt as to Hall's ability to continue as a going concern. The principal conditions and events that caused the substantial doubt have been fully disclosed in the notes to Hall's financial statements. Which of the following statements best describes Baker's reporting responsibility concerning this matter?

(Multiple Choice)

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Question 1033

An auditor should obtain sufficient knowledge of an entity's information system relevant to financial reporting to understand the:

(Multiple Choice)

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Question 1034

An auditor may report on condensed financial statements that are derived from complete financial statements if the:

(Multiple Choice)

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Question 1035

An auditor is required to obtain an understanding of the entity's business, including business cycles and reasons for business fluctuations. What is the audit purpose most directly served by obtaining this understanding?

(Multiple Choice)

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Question 1036

In establishing the existence and ownership of a long-term investment in the form of publicly-traded stock, an auditor should inspect the securities or:

(Multiple Choice)

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Question 1037

An accountant has been asked to issue a review report on the balance sheet of a nonissuer but not to report on the other basic financial statements. The accountant may not do so:

(Multiple Choice)

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Question 1038

Compiled financial statements should be accompanied by a report stating that:

(Multiple Choice)

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Question 1039

An independent accountant's report is based on a review of interim financial information. If this report is presented in a registration statement, a prospectus should include a statement clarifying that the:

(Multiple Choice)

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Question 1040

Showing 1021 - 1040 of 1050

Exam 1: CPA Auditing and Attestation Exam

Which of the following statements extracted from a client's lawyer's letter concerning litigation, claims, and assessments most likely would cause the auditor to request clarification?

Which of the following statements describes why a properly designed and executed audit may not detect a material misstatement due to fraud?

Which of the following statements about internal control is correct?

In an audit of financial statements, an auditor's primary consideration regarding internal control is whether the control:

Would the following factors ordinarily be considered in planning an audit engagement's personnel requirements?

An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. If the entity's disclosures concerning this matter are adequate, the audit report may include a(an):

When an auditor concludes there is substantial doubt about a continuing audit client's ability to continue as a going concern for a reasonable period of time, the auditor's responsibility is to:

Green, CPA, concludes that there is substantial doubt about JKL Co.'s ability to continue as a going concern. If JKL's financial statements adequately disclose its financial difficulties, Green's auditor's report should:

Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal controls in the revenue cycle?

An auditor who wishes to capture an entity's data as transactions are processed and continuously test the entity's computerized information system most likely would use which of the following techniques?

An accountant who reviews the financial statements of a nonissuer should issue a report stating that a review:

An auditor should obtain sufficient knowledge of an entity's information system relevant to financial reporting to understand the:

An auditor may report on condensed financial statements that are derived from complete financial statements if the:

An auditor is required to obtain an understanding of the entity's business, including business cycles and reasons for business fluctuations. What is the audit purpose most directly served by obtaining this understanding?

In establishing the existence and ownership of a long-term investment in the form of publicly-traded stock, an auditor should inspect the securities or:

An accountant has been asked to issue a review report on the balance sheet of a nonissuer but not to report on the other basic financial statements. The accountant may not do so:

Compiled financial statements should be accompanied by a report stating that:

An independent accountant's report is based on a review of interim financial information. If this report is presented in a registration statement, a prospectus should include a statement clarifying that the:

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