PRINCIPLES OF AUDITING AND OTHER
ASSURANCE SERVICES PRACTICE QUESTIONS
2026
◉ How does a review differ from an examination? Answer: A review
is less extensive and provides limited assurance that the information
is materially correct.
◉ How does Connect ensure a secure testing environment? Answer:
By providing secure interfaces and identity verification for students.
◉ How does Connect facilitate course management for instructors?
Answer: It allows seamless integration with major Learning
Management Systems for organizing courses.
◉ How does Connect help students manage their assignments?
Answer: Through the Connect Calendar and Reports tools.
◉ How does fraud differ from errors in the context of auditing?
Answer: Fraud involves intentional acts that cause misstatements in
financial statements.
,◉ How does Tegrity enhance student learning? Answer: By allowing
students to replay lectures and search for specific content.
◉ How does the CPA exam support students' career success?
Answer: By providing a structured approach to mastering essential
accounting knowledge and skills.
◉ How does the text address Data Analytics in auditing? Answer: It
emphasizes the use of automated tools and techniques to facilitate
the collection of audit evidence.
◉ How is the text organized to facilitate learning? Answer: It is
organized around balance sheet accounts, aligning with risk
assessment approaches.
◉ What approach does the text take regarding auditing procedures?
Answer: A risk-based approach to selecting appropriate auditing
procedures.
◉ What are assurance services? Answer: Services that enhance the
reliability of information for decision-makers.
◉ What are attribute standards in internal auditing? Answer:
Standards that address the characteristics of internal audit activities
and the qualifications of internal auditors.
,◉ What are control activities? Answer: Control activities are the
policies and procedures that help ensure that management
directives are carried out.
◉ What are ethical dilemmas? Answer: Situations in which a choice
must be made between two or more competing ethical principles.
◉ What are Ethics Cases designed to do? Answer: They allow
instructors to discuss ethical issues that accountants may encounter
in practice.
◉ What are general controls in an IT environment? Answer: General
controls are policies and procedures that apply to all systems and
help ensure the integrity of data.
◉ What are some examples of nonassurance services offered by
CPAs? Answer: Fraud investigations, information technology
consulting, and bookkeeping.
◉ What are substantive procedures for selling, general, and
administrative expenses? Answer: These procedures include testing
transactions and reviewing expense accounts for accuracy and
completeness.
, ◉ What are substantive procedures in an audit? Answer:
Substantive procedures are tests designed to detect material
misstatements in financial statements.
◉ What are substantive procedures in auditing? Answer: Procedures
designed to detect material misstatements in financial statements
through direct testing.
◉ What are suitable criteria in an attestation engagement? Answer:
Standards established by expert groups that the subject matter must
adhere to for the engagement to be valid.
◉ What are the AICPA Generally Accepted Auditing Standards?
Answer: Standards that guide auditors in conducting audits and
ensuring the reliability of financial statements.
◉ What are the auditors' objectives in auditing accounts payable?
Answer: To verify the completeness, existence, and accuracy of
accounts payable balances.
◉ What are the auditors' objectives in auditing inventories and cost
of goods sold? Answer: To ensure inventory is accurately valued and
recorded and that cost of goods sold is properly calculated.
ASSURANCE SERVICES PRACTICE QUESTIONS
2026
◉ How does a review differ from an examination? Answer: A review
is less extensive and provides limited assurance that the information
is materially correct.
◉ How does Connect ensure a secure testing environment? Answer:
By providing secure interfaces and identity verification for students.
◉ How does Connect facilitate course management for instructors?
Answer: It allows seamless integration with major Learning
Management Systems for organizing courses.
◉ How does Connect help students manage their assignments?
Answer: Through the Connect Calendar and Reports tools.
◉ How does fraud differ from errors in the context of auditing?
Answer: Fraud involves intentional acts that cause misstatements in
financial statements.
,◉ How does Tegrity enhance student learning? Answer: By allowing
students to replay lectures and search for specific content.
◉ How does the CPA exam support students' career success?
Answer: By providing a structured approach to mastering essential
accounting knowledge and skills.
◉ How does the text address Data Analytics in auditing? Answer: It
emphasizes the use of automated tools and techniques to facilitate
the collection of audit evidence.
◉ How is the text organized to facilitate learning? Answer: It is
organized around balance sheet accounts, aligning with risk
assessment approaches.
◉ What approach does the text take regarding auditing procedures?
Answer: A risk-based approach to selecting appropriate auditing
procedures.
◉ What are assurance services? Answer: Services that enhance the
reliability of information for decision-makers.
◉ What are attribute standards in internal auditing? Answer:
Standards that address the characteristics of internal audit activities
and the qualifications of internal auditors.
,◉ What are control activities? Answer: Control activities are the
policies and procedures that help ensure that management
directives are carried out.
◉ What are ethical dilemmas? Answer: Situations in which a choice
must be made between two or more competing ethical principles.
◉ What are Ethics Cases designed to do? Answer: They allow
instructors to discuss ethical issues that accountants may encounter
in practice.
◉ What are general controls in an IT environment? Answer: General
controls are policies and procedures that apply to all systems and
help ensure the integrity of data.
◉ What are some examples of nonassurance services offered by
CPAs? Answer: Fraud investigations, information technology
consulting, and bookkeeping.
◉ What are substantive procedures for selling, general, and
administrative expenses? Answer: These procedures include testing
transactions and reviewing expense accounts for accuracy and
completeness.
, ◉ What are substantive procedures in an audit? Answer:
Substantive procedures are tests designed to detect material
misstatements in financial statements.
◉ What are substantive procedures in auditing? Answer: Procedures
designed to detect material misstatements in financial statements
through direct testing.
◉ What are suitable criteria in an attestation engagement? Answer:
Standards established by expert groups that the subject matter must
adhere to for the engagement to be valid.
◉ What are the AICPA Generally Accepted Auditing Standards?
Answer: Standards that guide auditors in conducting audits and
ensuring the reliability of financial statements.
◉ What are the auditors' objectives in auditing accounts payable?
Answer: To verify the completeness, existence, and accuracy of
accounts payable balances.
◉ What are the auditors' objectives in auditing inventories and cost
of goods sold? Answer: To ensure inventory is accurately valued and
recorded and that cost of goods sold is properly calculated.
