AICPA Test Questions with 100% Correct
Answers
An accountant's working papers for an engagement to review the financial statements
of a nonpublic entity would be least likely to include which of the following forms of
documentation?
A.Study and evaluation of internal control.
B.Explanation of analytical procedures performed.
C. A copy of the engagement letter.
D. copies of representation letters from client management.
key word is REVIEW
a review (10Q) of financial stmts vs an actual audit (10K)...
--> do not need IC bc not performing an audit.
in a review, the auditor provides limited assurance that no material modifications are
necessary for the fin stmts to conform to GAAP
An accountant is reviewing the financial statements of a nonpublic entity in accordance
with Statements on Standards for Accounting and Review Services (SSARS). The
accountant most likely would perform which of the following procedures?
a.Obtain an understanding of the internal control structure.
b.Make inquiries about subsequent events.
c.Send bank account confirmations.
d.Perform limited tests of controls.
, b. make inquiries about subsequent events
everything else is more so related to an actual audit.
Which of the following factors would an auditor most likely consider in evaluating the
control environment for an audit client?
A. Monthly bank reconciliations with supervisor sign-offs.
B. The ethical values demonstrated by management.
C.Organizational structure used for tax purposes.
D. the number of employees in each department.
CONTROL ENVIRONMENT - TONE AT THE TOP
B.
Which of the following factors represents an inherent limitation of internal control? A.
B. C. D.
A. Absence of segregation of duties.
B. Failure to perform required tasks.
C. Mistakes resulting from human error.
D.Inadequate provisions to safeguard assets.
inherent -- cannot control
C. you cannot control human error mistakes.
you can control the rest of the options.
*POST MIDTERM QUESTION RELATING TO SUBSTANTIVE TESTING*
When conducting a review engagement of a nonissuer, each of the following is
considered an analytical procedure, except a comparison of the current-year's financial
information to
A. Expectations developed by the accountant.
Answers
An accountant's working papers for an engagement to review the financial statements
of a nonpublic entity would be least likely to include which of the following forms of
documentation?
A.Study and evaluation of internal control.
B.Explanation of analytical procedures performed.
C. A copy of the engagement letter.
D. copies of representation letters from client management.
key word is REVIEW
a review (10Q) of financial stmts vs an actual audit (10K)...
--> do not need IC bc not performing an audit.
in a review, the auditor provides limited assurance that no material modifications are
necessary for the fin stmts to conform to GAAP
An accountant is reviewing the financial statements of a nonpublic entity in accordance
with Statements on Standards for Accounting and Review Services (SSARS). The
accountant most likely would perform which of the following procedures?
a.Obtain an understanding of the internal control structure.
b.Make inquiries about subsequent events.
c.Send bank account confirmations.
d.Perform limited tests of controls.
, b. make inquiries about subsequent events
everything else is more so related to an actual audit.
Which of the following factors would an auditor most likely consider in evaluating the
control environment for an audit client?
A. Monthly bank reconciliations with supervisor sign-offs.
B. The ethical values demonstrated by management.
C.Organizational structure used for tax purposes.
D. the number of employees in each department.
CONTROL ENVIRONMENT - TONE AT THE TOP
B.
Which of the following factors represents an inherent limitation of internal control? A.
B. C. D.
A. Absence of segregation of duties.
B. Failure to perform required tasks.
C. Mistakes resulting from human error.
D.Inadequate provisions to safeguard assets.
inherent -- cannot control
C. you cannot control human error mistakes.
you can control the rest of the options.
*POST MIDTERM QUESTION RELATING TO SUBSTANTIVE TESTING*
When conducting a review engagement of a nonissuer, each of the following is
considered an analytical procedure, except a comparison of the current-year's financial
information to
A. Expectations developed by the accountant.
