©THESTAR 2024/2025 ALL RIGHTS RESERVED 1:27PM. A+
AUD Exam Questions And Answers |Latest
2025 | Guaranteed Pass.
What are some examples of scope limitations? - Answer✔- Time constraints
- Inability to obtain sufficient appropriate evidence (if cannot perform alternative procedures,
auditor would then express qualified or disclaimer)
- Refusal of mgmt. to provide written representation and/or to acknowledge its responsibility
for the fair presentation of the financial statements in conformity with GAAP
- Refusal of client's attorney to respond to inquiry
If management imposes a limitation and will not remove it, what should the auditor do? -
Answer✔The auditor should communicate with those charged with governance and determine
whether its possible to perform alternative procedures.
** if the auditor is unable to obtain sufficient appropriate evidence due to mgmt imposed
limitation and auditor concludes the possible effects of misstatements can be material and
pervasive, then the auditor should disclaim an opinion or withdraw.
In unqualified opinion for issuer, where do you refer to the standards? - Answer✔PCAOB - basis
for opinion
GAAP - opinion on FS section
What is a CAM (critical audit matter)? - Answer✔A matter that was communicated or required
to be communicated to the audit committee and that:
01. relates to accounts or disclosures that are material to FS; and
02. involved especially challenging, subjective, or complex auditor judgement
How do you document a CAM? - Answer✔Make sure to IDENTIFY it on a PAD of paper.
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, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 1:27PM. A+
- identification of CAM
- description of the principal considerations that led the auditor to determine the matter was a
CAM
- description of how the CAM was addressed in the audit; and
- reference to the relevant FS accounts or disclosures
For an unmodified report for nonissuers, when do you refer to appropriate standards? -
Answer✔GAAS - basis for opinion and auditor's responsibilities paragraphs
GAAP - management's responsibility and opinion paragraphs
Format of Unmodified Opinion (OBRA) - NONISSUER - Answer✔- Opinion
- Basis for Opinion
- Responsibilities of Management for the FS
- Auditor's Responsibilities for the Audit of the FS
What are the 3 levels of audit guidance? - Answer✔- Most authoritative: SAS from AICPA
(nonissuers) and PCAOB AS (issuers)
- Interpretive Publications
- Least authoritative: Other Auditing Publications
What is the specific language used within the standards to clarify the auditor's level of
responsibility? - Answer✔- "Must" or "is required" indicates unconditional requirement
- "Should" indicates a presumptively mandatory requirement
- "May", "Might", and "Could" indicate explanatory material that does not impose a
professional requirement for performance
Generally Accepted Government Auditing Standards (GAGAS) - Answer✔Provides guidance for
audits of government organizations, programs, activities, and of entities that receives
government funds.
Statements on Standards for Attestation Engagements (SSAE) - Answer✔- Set by AICPA
- Provide guidance for attestation engagements such as examination, agreed-upon procedures
on report or assertions about subject matter, that is responsibility of another party.
Statements on Standards for Accounting and Review Services (SSARS) - Answer✔- Set by AICPA
- Provide guidance for unaudited FS or unaudited financial information of nonissuers
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AUD Exam Questions And Answers |Latest
2025 | Guaranteed Pass.
What are some examples of scope limitations? - Answer✔- Time constraints
- Inability to obtain sufficient appropriate evidence (if cannot perform alternative procedures,
auditor would then express qualified or disclaimer)
- Refusal of mgmt. to provide written representation and/or to acknowledge its responsibility
for the fair presentation of the financial statements in conformity with GAAP
- Refusal of client's attorney to respond to inquiry
If management imposes a limitation and will not remove it, what should the auditor do? -
Answer✔The auditor should communicate with those charged with governance and determine
whether its possible to perform alternative procedures.
** if the auditor is unable to obtain sufficient appropriate evidence due to mgmt imposed
limitation and auditor concludes the possible effects of misstatements can be material and
pervasive, then the auditor should disclaim an opinion or withdraw.
In unqualified opinion for issuer, where do you refer to the standards? - Answer✔PCAOB - basis
for opinion
GAAP - opinion on FS section
What is a CAM (critical audit matter)? - Answer✔A matter that was communicated or required
to be communicated to the audit committee and that:
01. relates to accounts or disclosures that are material to FS; and
02. involved especially challenging, subjective, or complex auditor judgement
How do you document a CAM? - Answer✔Make sure to IDENTIFY it on a PAD of paper.
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 1:27PM. A+
- identification of CAM
- description of the principal considerations that led the auditor to determine the matter was a
CAM
- description of how the CAM was addressed in the audit; and
- reference to the relevant FS accounts or disclosures
For an unmodified report for nonissuers, when do you refer to appropriate standards? -
Answer✔GAAS - basis for opinion and auditor's responsibilities paragraphs
GAAP - management's responsibility and opinion paragraphs
Format of Unmodified Opinion (OBRA) - NONISSUER - Answer✔- Opinion
- Basis for Opinion
- Responsibilities of Management for the FS
- Auditor's Responsibilities for the Audit of the FS
What are the 3 levels of audit guidance? - Answer✔- Most authoritative: SAS from AICPA
(nonissuers) and PCAOB AS (issuers)
- Interpretive Publications
- Least authoritative: Other Auditing Publications
What is the specific language used within the standards to clarify the auditor's level of
responsibility? - Answer✔- "Must" or "is required" indicates unconditional requirement
- "Should" indicates a presumptively mandatory requirement
- "May", "Might", and "Could" indicate explanatory material that does not impose a
professional requirement for performance
Generally Accepted Government Auditing Standards (GAGAS) - Answer✔Provides guidance for
audits of government organizations, programs, activities, and of entities that receives
government funds.
Statements on Standards for Attestation Engagements (SSAE) - Answer✔- Set by AICPA
- Provide guidance for attestation engagements such as examination, agreed-upon procedures
on report or assertions about subject matter, that is responsibility of another party.
Statements on Standards for Accounting and Review Services (SSARS) - Answer✔- Set by AICPA
- Provide guidance for unaudited FS or unaudited financial information of nonissuers
2|Page
