D215 Auditing, PA Questions and Answers
1. Financial statement review
Which type of work performed by a CPA is an attestation
service?
Risk advisory
Website security assurance
Data integrity
Financial statement review
2. Governments
Which entity may obtain audited financial statements to
ensure a company is complying with industry
regulations?
Lenders
Consumers
Governments
General public
3. Independent third-party auditors
Which group performs an audit and review of financial
statements to ensure financial statement users' needs are
met?
Internal auditors
The Internal Revenue Service (IRS)
Independent third-party auditors
The Financial Accounting Standards Board (FASB)
4. Unqualified
Which type of report should be issued if an auditor has
determined that a company has maintained effective
internal controls over financial reporting for the period
under audit?
Adverse
Qualified
Disclaimer
Unqualified
,5. Concern for the public interest
A new CPA is aware of how accounting affects
stakeholders.
Which characteristic of professionalism is motivating this
awareness?
Level of expertise
Advanced certification
Professional judgment
Concern for the public interest
6. Principles
Which component of the AICPA Code of Professional
Conduct provides the tenets of ethical conduct that
govern the professional responsibility of its members?
Morals
Principles
Interpretations
Rules of conduct
7. Undue influence
A CPA firm provides tax services for a large automotive
client. Over the years, the client has continually pushed
for aggressive tax strategies that the CPA does not always
agree with.
While performing the current year tax return, the client
threatens to discontinue the relationship with the CPA
firm if they continue to disagree with the strategies
presented.
Which type of threat to ethical decision-making is
demonstrated by this practice?
Self-review
Self-interest
Adverse interest
Undue influence
, 8. Integrity and Objectivity
A CPA has prepared a couple's joint tax returns for 10
years, but the couple is now experiencing a complicated
divorce where both parties wish to claim the same child
as a dependent. The CPA agrees to work with both clients
on their tax returns.
Which standard of the AICPA Code of Professional
Conduct is being violated by this CPA's action?
Independence
Contingent Fees
Accounting Principles
Integrity and Objectivity
9. The CPA firm must send the CPAs to a continuing professional education course
A large client asks a CPA firm for consulting help with on sales and use tax reporting.
their quarterly sales and use tax reporting. The CPA firm
specializes in audit and tax preparation and has not dealt
with this type of work in the past but would like to add it.
The firm decides to accept the job.
Which step is required to maintain compliance with the
general standards of the AICPA Code of Professional
Conduct?
The CPA firm must send the CPAs to a continuing
professional education course on sales and use tax
reporting.
The CPA firm must be independent of the client to
perform consulting services on sales and use tax reports.
The CPA firm must develop this line of work by adding
additional clients who need assistance with sales and use
tax reports.
The CPA firm must collect sufficient relevant data to
complete sales and use tax reports.
1. Financial statement review
Which type of work performed by a CPA is an attestation
service?
Risk advisory
Website security assurance
Data integrity
Financial statement review
2. Governments
Which entity may obtain audited financial statements to
ensure a company is complying with industry
regulations?
Lenders
Consumers
Governments
General public
3. Independent third-party auditors
Which group performs an audit and review of financial
statements to ensure financial statement users' needs are
met?
Internal auditors
The Internal Revenue Service (IRS)
Independent third-party auditors
The Financial Accounting Standards Board (FASB)
4. Unqualified
Which type of report should be issued if an auditor has
determined that a company has maintained effective
internal controls over financial reporting for the period
under audit?
Adverse
Qualified
Disclaimer
Unqualified
,5. Concern for the public interest
A new CPA is aware of how accounting affects
stakeholders.
Which characteristic of professionalism is motivating this
awareness?
Level of expertise
Advanced certification
Professional judgment
Concern for the public interest
6. Principles
Which component of the AICPA Code of Professional
Conduct provides the tenets of ethical conduct that
govern the professional responsibility of its members?
Morals
Principles
Interpretations
Rules of conduct
7. Undue influence
A CPA firm provides tax services for a large automotive
client. Over the years, the client has continually pushed
for aggressive tax strategies that the CPA does not always
agree with.
While performing the current year tax return, the client
threatens to discontinue the relationship with the CPA
firm if they continue to disagree with the strategies
presented.
Which type of threat to ethical decision-making is
demonstrated by this practice?
Self-review
Self-interest
Adverse interest
Undue influence
, 8. Integrity and Objectivity
A CPA has prepared a couple's joint tax returns for 10
years, but the couple is now experiencing a complicated
divorce where both parties wish to claim the same child
as a dependent. The CPA agrees to work with both clients
on their tax returns.
Which standard of the AICPA Code of Professional
Conduct is being violated by this CPA's action?
Independence
Contingent Fees
Accounting Principles
Integrity and Objectivity
9. The CPA firm must send the CPAs to a continuing professional education course
A large client asks a CPA firm for consulting help with on sales and use tax reporting.
their quarterly sales and use tax reporting. The CPA firm
specializes in audit and tax preparation and has not dealt
with this type of work in the past but would like to add it.
The firm decides to accept the job.
Which step is required to maintain compliance with the
general standards of the AICPA Code of Professional
Conduct?
The CPA firm must send the CPAs to a continuing
professional education course on sales and use tax
reporting.
The CPA firm must be independent of the client to
perform consulting services on sales and use tax reports.
The CPA firm must develop this line of work by adding
additional clients who need assistance with sales and use
tax reports.
The CPA firm must collect sufficient relevant data to
complete sales and use tax reports.
