CPA AUD EXAM |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
To exercise due professional care an auditor should
A. Attain the proper balance of professional experience and formal education.
B. Design the audit to detect all instances of illegal acts.
C. Critically review the judgment exercised by those assisting in the audit.
D. Examine all available corroborating evidence supporting management's assertions.
CORRECT ANSWER
C. Critically review the judgment exercised by those assisting in the audit.
The auditor is required by GAAS to exercise due care in the performance of the audit and
the preparation of the report. Due care encompasses the employment of reasonable care
and diligence as well as critical review at every level of supervision of the work done and
the judgment exercised by those assisting in the audit.
Question 2
A CPA firm would best provide itself reasonable assurance of meeting its responsibility to
offer professional services that conform with professional standards by
A. Establishing an understanding with each client concerning individual responsibilities in a
signed engagement letter.
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,B. Assessing the risk that errors and fraud may cause the financial statements to contain
material misstatements.
C. Developing specific audit objectives to support management's assertions that are
embodied in the financial statements.
D. Maintaining a comprehensive system of quality control that is suitably designed in
relation to its organizational structure.
CORRECT ANSWER
D. Maintaining a comprehensive system of quality control that is suitably designed in
relation to its organizational structure.
The purpose of a firm's system of quality control is to provide the firm with reasonable
assurance that the firm (and its personnel) comply with professional standards and
applicable regulatory and legal requirements and issue reports that are appropriate in
the circumstances.
Question 3
The GAAS requirement states that due care is to be exercised in the performance of an
audit is ordinarily interpreted to require
A. Thorough review of the existing safeguards over access to assets and records.
B. Limited review of the indications of employee fraud and illegal acts.
C. Objective review of the adequacy of the technical training and proficiency of firm
personnel.
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,D. Critical review of the judgment exercised at every level of supervision.
CORRECT ANSWER
D. Critical review of the judgment exercised at every level of supervision.
While due care imposes the general responsibility of following the applicable GAAS
standards, the professional standards specifically address the need for critical review.
Exercising due care is defined as requiring "critical review" of the work performed and
the audit judgments made at every level of supervision.
Question 4
A CPA firm evaluates its personnel advancement experience to ascertain whether
individuals meeting stated criteria are assigned increased degrees of responsibility.
This is evidence of the firm's adherence to which of the following prescribed standards
A. Professional ethics.
B. Supervision and review.
C. Accounting and review services.
D. Quality control.
CORRECT ANSWER
D. Quality control.
Professional standards on quality control require that a firm establish policies and
procedures to ensure that personnel selected for advancement have the qualifications
necessary for the work they will be required to perform.
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, Question 5
The audit work performed by each assistant should be reviewed to determine whether it
was adequately performed and to evaluate whether the
A. Auditor's system of quality control has been maintained at a high level.
B. Results are consistent with the conclusions to be presented in the auditor's report.
C. Audit procedures performed are approved in the professional standards.
D. Audit has been performed by persons having adequate technical training and proficiency
as auditors.
CORRECT ANSWER
B. Results are consistent with the conclusions to be presented in the auditor's report.
The audit work performed by each assistant should be reviewed for adequacy and to
ensure that it supports the conclusions reached.
Question 6
The primary purpose of establishing quality control policies and procedures for deciding
whether to accept a new client is to
A. Enable the CPA firm to attest to the reliability of the client.
B. Satisfy the CPA firm's duty to the public concerning the acceptance of new clients.
C. Minimize the likelihood of association with clients whose management lacks integrity.
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VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
To exercise due professional care an auditor should
A. Attain the proper balance of professional experience and formal education.
B. Design the audit to detect all instances of illegal acts.
C. Critically review the judgment exercised by those assisting in the audit.
D. Examine all available corroborating evidence supporting management's assertions.
CORRECT ANSWER
C. Critically review the judgment exercised by those assisting in the audit.
The auditor is required by GAAS to exercise due care in the performance of the audit and
the preparation of the report. Due care encompasses the employment of reasonable care
and diligence as well as critical review at every level of supervision of the work done and
the judgment exercised by those assisting in the audit.
Question 2
A CPA firm would best provide itself reasonable assurance of meeting its responsibility to
offer professional services that conform with professional standards by
A. Establishing an understanding with each client concerning individual responsibilities in a
signed engagement letter.
1
,B. Assessing the risk that errors and fraud may cause the financial statements to contain
material misstatements.
C. Developing specific audit objectives to support management's assertions that are
embodied in the financial statements.
D. Maintaining a comprehensive system of quality control that is suitably designed in
relation to its organizational structure.
CORRECT ANSWER
D. Maintaining a comprehensive system of quality control that is suitably designed in
relation to its organizational structure.
The purpose of a firm's system of quality control is to provide the firm with reasonable
assurance that the firm (and its personnel) comply with professional standards and
applicable regulatory and legal requirements and issue reports that are appropriate in
the circumstances.
Question 3
The GAAS requirement states that due care is to be exercised in the performance of an
audit is ordinarily interpreted to require
A. Thorough review of the existing safeguards over access to assets and records.
B. Limited review of the indications of employee fraud and illegal acts.
C. Objective review of the adequacy of the technical training and proficiency of firm
personnel.
2
,D. Critical review of the judgment exercised at every level of supervision.
CORRECT ANSWER
D. Critical review of the judgment exercised at every level of supervision.
While due care imposes the general responsibility of following the applicable GAAS
standards, the professional standards specifically address the need for critical review.
Exercising due care is defined as requiring "critical review" of the work performed and
the audit judgments made at every level of supervision.
Question 4
A CPA firm evaluates its personnel advancement experience to ascertain whether
individuals meeting stated criteria are assigned increased degrees of responsibility.
This is evidence of the firm's adherence to which of the following prescribed standards
A. Professional ethics.
B. Supervision and review.
C. Accounting and review services.
D. Quality control.
CORRECT ANSWER
D. Quality control.
Professional standards on quality control require that a firm establish policies and
procedures to ensure that personnel selected for advancement have the qualifications
necessary for the work they will be required to perform.
3
, Question 5
The audit work performed by each assistant should be reviewed to determine whether it
was adequately performed and to evaluate whether the
A. Auditor's system of quality control has been maintained at a high level.
B. Results are consistent with the conclusions to be presented in the auditor's report.
C. Audit procedures performed are approved in the professional standards.
D. Audit has been performed by persons having adequate technical training and proficiency
as auditors.
CORRECT ANSWER
B. Results are consistent with the conclusions to be presented in the auditor's report.
The audit work performed by each assistant should be reviewed for adequacy and to
ensure that it supports the conclusions reached.
Question 6
The primary purpose of establishing quality control policies and procedures for deciding
whether to accept a new client is to
A. Enable the CPA firm to attest to the reliability of the client.
B. Satisfy the CPA firm's duty to the public concerning the acceptance of new clients.
C. Minimize the likelihood of association with clients whose management lacks integrity.
4
