PRINCIPLES OF AUDITING AND OTHER
ASSURANCE SERVICES 2026 COMPREHENSIVE
EXAM
◉ A. Answer: Which of the following is mandatory if the auditor is to
comply with generally accepted auditing standards?
a. Possession by the auditor of adequate technical training.
b. Use of analytical review on audit engagements.
c. Use of statistical sampling whenever feasible on an audit
engagement.
d. Confirmation by the auditor of material accounts receivable
balances.
◉ C. Answer: Competence as a certified public accountant includes
all of the following except
a. Having the technical qualifications to perform an engagement.
b. Possessing the ability to supervise and evaluate the quality of staff
work.
c. Warranting the infallibility of the work performed.
d. Consulting others if additional technical information is needed.
,◉ C. Answer: Which of the following did not result at least partially
due to the alleged audit failures of the 1980s and 1990s?
a. The Treadway Report.
b. An SAS further defining the auditor's responsibility for fraud
detection.
c. Formation of the AICPA Fraud Commission.
d. Formation of the Independence Standards Board.
◉ B. Answer: Which of the following is an element of a CPA firm's
quality control system that should be considered in establishing its
quality control policies and procedures?
a. Complying with laws and regulations
b. Assigning personnel to engagements
c. Using statistical sampling techniques
d. Considering audit risk and materiality
◉ D. Answer: Certain fundamental beliefs called "postulates"
underlie auditing theory. Which of the following is not a postulate of
auditing?
a. No long-term conflict exists between the auditor and the
management of the enterprise under audit.
,b. Economic assertions can be verified.
c. The auditor acts exclusively as an auditor.
d. An audit has a benefit only to the owners.
◉ D. Answer: In all cases, audit reports must:
a. Be signed by the individual who performed the audit procedures.
b. Certify the accuracy of the quantitative information which was
audited.
c. Communicate the auditor's findings to the general public.
d. Inform readers of the degree of correspondence between the
quantifiable information and the established criteria.
◉ C. Answer: The auditor communicates the results of his or her
work through the medium of the:
a. Engagement letter.
b. Management letter.
c. Audit report.
d. Financial statements.
◉ A. Answer: Which of the following is a correct statement relating
to the theoretical framework of auditing?
a. The financial data to be audited can be verified.
, b. Short-term conflicts do not exist between managers who prepare
data and auditors who examine data.
c. Auditors do not necessarily need independence.
d. An audit has a benefit only to the owners.
◉ A. Answer: Which of the following underlies the application of
generally accepted auditing standards, particularly the standards of
field work and reporting?
a. The elements of materiality and risk.
b. The element of internal control.
c. The element of corroborating evidence.
d. The element of reasonable assurance.
◉ C. Answer: Which of the following best describes a relationship
between sample size and other elements of auditing?
A. If materiality increases, so will the sample size.
B. If the desired level of assurance increases, sample sizes can be
smaller.
C. If materiality decreases, sample size will need to increase.
D. There is no relationship between sample size and materiality or
the desired level of assurance
ASSURANCE SERVICES 2026 COMPREHENSIVE
EXAM
◉ A. Answer: Which of the following is mandatory if the auditor is to
comply with generally accepted auditing standards?
a. Possession by the auditor of adequate technical training.
b. Use of analytical review on audit engagements.
c. Use of statistical sampling whenever feasible on an audit
engagement.
d. Confirmation by the auditor of material accounts receivable
balances.
◉ C. Answer: Competence as a certified public accountant includes
all of the following except
a. Having the technical qualifications to perform an engagement.
b. Possessing the ability to supervise and evaluate the quality of staff
work.
c. Warranting the infallibility of the work performed.
d. Consulting others if additional technical information is needed.
,◉ C. Answer: Which of the following did not result at least partially
due to the alleged audit failures of the 1980s and 1990s?
a. The Treadway Report.
b. An SAS further defining the auditor's responsibility for fraud
detection.
c. Formation of the AICPA Fraud Commission.
d. Formation of the Independence Standards Board.
◉ B. Answer: Which of the following is an element of a CPA firm's
quality control system that should be considered in establishing its
quality control policies and procedures?
a. Complying with laws and regulations
b. Assigning personnel to engagements
c. Using statistical sampling techniques
d. Considering audit risk and materiality
◉ D. Answer: Certain fundamental beliefs called "postulates"
underlie auditing theory. Which of the following is not a postulate of
auditing?
a. No long-term conflict exists between the auditor and the
management of the enterprise under audit.
,b. Economic assertions can be verified.
c. The auditor acts exclusively as an auditor.
d. An audit has a benefit only to the owners.
◉ D. Answer: In all cases, audit reports must:
a. Be signed by the individual who performed the audit procedures.
b. Certify the accuracy of the quantitative information which was
audited.
c. Communicate the auditor's findings to the general public.
d. Inform readers of the degree of correspondence between the
quantifiable information and the established criteria.
◉ C. Answer: The auditor communicates the results of his or her
work through the medium of the:
a. Engagement letter.
b. Management letter.
c. Audit report.
d. Financial statements.
◉ A. Answer: Which of the following is a correct statement relating
to the theoretical framework of auditing?
a. The financial data to be audited can be verified.
, b. Short-term conflicts do not exist between managers who prepare
data and auditors who examine data.
c. Auditors do not necessarily need independence.
d. An audit has a benefit only to the owners.
◉ A. Answer: Which of the following underlies the application of
generally accepted auditing standards, particularly the standards of
field work and reporting?
a. The elements of materiality and risk.
b. The element of internal control.
c. The element of corroborating evidence.
d. The element of reasonable assurance.
◉ C. Answer: Which of the following best describes a relationship
between sample size and other elements of auditing?
A. If materiality increases, so will the sample size.
B. If the desired level of assurance increases, sample sizes can be
smaller.
C. If materiality decreases, sample size will need to increase.
D. There is no relationship between sample size and materiality or
the desired level of assurance
