AUD -AICPA Newly Released Questions
– AUD Test With 100% Actual Answers.
The principle of due care in the AICPA Code of Professional Conduct relates to which of the
following professional requirements?
A. Providing services with an unbiased, open mind
B. Providing services without conflicts of interest
C. Providing services with a sense of integrity
D. Providing services with competence and diligence - Answer D
Which of the following statements with respect to the PCAOB rules on independence is correct?
A. Public confidence would usually not be impaired by the existence of circumstances that
reasonable people might believe likely to influence independence
B. Auditors should be independent in fact but are not obligated to avoid situations that could
lead outsiders to doubt their independence
C. Independence implies the attitude of a prosecutor that recognizes an obligation for fairness
to management and other stakeholders
D. Auditors must be without bias with respect to a client in order to maintain the impartiality
necessary for the dependability of audit findings - Answer D
A CPA is engaged to audit the financial statements of a local government that receives federal
awards. The CPA will be required to perform a Single Audit for which of the following reasons?
A. To provide reasonable assurance that the financial statements are free of material
misstatements, whether caused by error or fraud
B. To determine whether the entity complied with laws, regulations, and provisions of contracts
or grant agreements pertaining to federal awards that have a direct and material effect on each
major program
C. To provide reasonable assurance of detecting material misstatements resulting from
noncompliance with provisions of contracts or grant agreements that have a direct and material
effect on the determination of financial statement amounts
D. To provide reasonable assurance that the financial statements are free of material
misstatements resulting from violations of laws and regulations that have - Answer B
How is an agreed-upon procedures engagement best characterized?
, A. An examination of information that results in the practitioner expressing negative assurance
on the subject matter
B. An inquiry into circumstances surrounding an allegation or incident
C. An engagement for which a client requested a practitioner to issue a report of findings based
on specific procedures performed on a subject matter
D. An engagement that covers slightly less than a full audit - Answer C
Under which of the following circumstances, if any, can an auditor, who is not independent,
perform an audit engagement of a nonissuer?
A. The auditor has performed the financial statement audit in multiple prior years
B. The auditor is required by law to accept the engagement and report on the financial
statements
C. The auditor's lack of independence is not due to financial reasons
D. The auditor is precluded from accepting the engagement and reporting on the financial
statements under any circumstances - Answer B
Communication related to the inherent limitations of internal control of a nonissuer is required
to which of the following documents?
A. An engagement letter
B. A letter of inquiry sent to the client's attorney
C. A review report
D. A management letter - Answer A
On which of the following dates would it be appropriate for an auditor of a nonissuer to discard
audit documentation if the engagement letter was signed on June 30, year 1, the audit was
substantially complete on September 1, year 1, and the audit report was released on March 15,
year 2?
A. June 30, year 3
B. June 30, year 6
C. September 1, year 6
D. March 30, year 7 - Answer D
As part of communicating the overall strategy for an audit of an issuer's internal control over
financial reporting, an auditor should communicate which of the following matters to the audit
committee?
– AUD Test With 100% Actual Answers.
The principle of due care in the AICPA Code of Professional Conduct relates to which of the
following professional requirements?
A. Providing services with an unbiased, open mind
B. Providing services without conflicts of interest
C. Providing services with a sense of integrity
D. Providing services with competence and diligence - Answer D
Which of the following statements with respect to the PCAOB rules on independence is correct?
A. Public confidence would usually not be impaired by the existence of circumstances that
reasonable people might believe likely to influence independence
B. Auditors should be independent in fact but are not obligated to avoid situations that could
lead outsiders to doubt their independence
C. Independence implies the attitude of a prosecutor that recognizes an obligation for fairness
to management and other stakeholders
D. Auditors must be without bias with respect to a client in order to maintain the impartiality
necessary for the dependability of audit findings - Answer D
A CPA is engaged to audit the financial statements of a local government that receives federal
awards. The CPA will be required to perform a Single Audit for which of the following reasons?
A. To provide reasonable assurance that the financial statements are free of material
misstatements, whether caused by error or fraud
B. To determine whether the entity complied with laws, regulations, and provisions of contracts
or grant agreements pertaining to federal awards that have a direct and material effect on each
major program
C. To provide reasonable assurance of detecting material misstatements resulting from
noncompliance with provisions of contracts or grant agreements that have a direct and material
effect on the determination of financial statement amounts
D. To provide reasonable assurance that the financial statements are free of material
misstatements resulting from violations of laws and regulations that have - Answer B
How is an agreed-upon procedures engagement best characterized?
, A. An examination of information that results in the practitioner expressing negative assurance
on the subject matter
B. An inquiry into circumstances surrounding an allegation or incident
C. An engagement for which a client requested a practitioner to issue a report of findings based
on specific procedures performed on a subject matter
D. An engagement that covers slightly less than a full audit - Answer C
Under which of the following circumstances, if any, can an auditor, who is not independent,
perform an audit engagement of a nonissuer?
A. The auditor has performed the financial statement audit in multiple prior years
B. The auditor is required by law to accept the engagement and report on the financial
statements
C. The auditor's lack of independence is not due to financial reasons
D. The auditor is precluded from accepting the engagement and reporting on the financial
statements under any circumstances - Answer B
Communication related to the inherent limitations of internal control of a nonissuer is required
to which of the following documents?
A. An engagement letter
B. A letter of inquiry sent to the client's attorney
C. A review report
D. A management letter - Answer A
On which of the following dates would it be appropriate for an auditor of a nonissuer to discard
audit documentation if the engagement letter was signed on June 30, year 1, the audit was
substantially complete on September 1, year 1, and the audit report was released on March 15,
year 2?
A. June 30, year 3
B. June 30, year 6
C. September 1, year 6
D. March 30, year 7 - Answer D
As part of communicating the overall strategy for an audit of an issuer's internal control over
financial reporting, an auditor should communicate which of the following matters to the audit
committee?
