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AUDIT CPA FINAL EXAM LATEST 2025 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||SUCCESS ASSURED||
||BRANDNEW!!!||
what auditor should consider for firm's client acceptance &
continuance policies - Answer-ability to meet reporting
deadlines, ability to staff engagements, independence, &
integrity of client mgmt (do we want to be associated with
them)
before accepting audit engagement - Answer-determine if
financial reporting framework is acceptable & obtain
agreement of mgmt that it acknowledges and understands
responsibilities
management responsibilities - Answer-preparation & fair
presentation of financial statements; design,
implementation, & maintenance of internal controls;
provide auditor with access to all relevant info, addtl info
auditor may request, & unrestricted access to people
necessary to obtain evidence
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inquiries should be made of predecessor auditor regarding
- Answer-integrity of mgmt, mgmt disagreements with
predecessor auditor, reason for change in auditors, any
fraud/noncompliance/internal control matters &
commmunication of those to mgmt/audit committee/those
charged with governance
during audit of new client, auditor should obtain sufficient
appropriate evidence about - Answer-if opening balances
contain misstatements & if all accounting policies are
consistently applied
new auditor should review predecessor's documentation of
- Answer-planning, risk assessment procedures, further
audit procedures, results, matters of continuing accounting
& audit significance
engagement letter - Answer-contract between client &
auditor to reduce risk of misinterpretation
for recurring audits, auditor should assess - Answer-if
circumstances requires terms of engagement to be
revised
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written engagement letter should include - Answer-
objective of audit, mgmt responsibilities, auditor
responsibilities (gather sufficient appropriate audit
evidence, express an opinion), limitations of engagement
(not providing total assurance, not guarantee f/s free of
misstatements), identification of applicable financial
reporting framework, reference to expected form & content
of report to be issued
audit documentation - Answer-written record of work
performed, evidence obtained, & conclusion reached
qualities of audit documentation - Answer-divided into
permanent & current files, supports auditor's
report/opinion, aids in training & conduct/supervision of
audit, provides record of accumulated evidence, indicates
that accounting records reconcile to financial statement,
contains enough info that an experienced auditor with no
prior knowledge of client could understand the work
performed
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audit documentation assembly & retention requirements -
Answer-issuers: documentation must be assembled within
45 days of audit report release & must be kept for 7 years
non-issuers: documentation must be assembled within 60
days of audit report release & must be kept for 5 years
audit documentation is confidential & can only be
disclosed without client permission if - Answer-part of
quality review program, subpoenaed for it, or part of
investigation by AICPA/state CPA society/state statute
those charged with governance - Answer-people who bear
responsibility to oversee obligations & direction of entity
(includes board of directors & audit committee)
audit committee - Answer-members of the board of
directors (usually independent/outside directors) who
aren't employees or part of mgmt & don't have material
financial interests in the company
audit committee functions - Answer-establish control
environment, select & appoint independent auditor, review
quality of auditor's work, respond to auditor
recommendations, help resolve disagreements in
AUDIT CPA FINAL EXAM LATEST 2025 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||SUCCESS ASSURED||
||BRANDNEW!!!||
what auditor should consider for firm's client acceptance &
continuance policies - Answer-ability to meet reporting
deadlines, ability to staff engagements, independence, &
integrity of client mgmt (do we want to be associated with
them)
before accepting audit engagement - Answer-determine if
financial reporting framework is acceptable & obtain
agreement of mgmt that it acknowledges and understands
responsibilities
management responsibilities - Answer-preparation & fair
presentation of financial statements; design,
implementation, & maintenance of internal controls;
provide auditor with access to all relevant info, addtl info
auditor may request, & unrestricted access to people
necessary to obtain evidence
,2|Page
inquiries should be made of predecessor auditor regarding
- Answer-integrity of mgmt, mgmt disagreements with
predecessor auditor, reason for change in auditors, any
fraud/noncompliance/internal control matters &
commmunication of those to mgmt/audit committee/those
charged with governance
during audit of new client, auditor should obtain sufficient
appropriate evidence about - Answer-if opening balances
contain misstatements & if all accounting policies are
consistently applied
new auditor should review predecessor's documentation of
- Answer-planning, risk assessment procedures, further
audit procedures, results, matters of continuing accounting
& audit significance
engagement letter - Answer-contract between client &
auditor to reduce risk of misinterpretation
for recurring audits, auditor should assess - Answer-if
circumstances requires terms of engagement to be
revised
,3|Page
written engagement letter should include - Answer-
objective of audit, mgmt responsibilities, auditor
responsibilities (gather sufficient appropriate audit
evidence, express an opinion), limitations of engagement
(not providing total assurance, not guarantee f/s free of
misstatements), identification of applicable financial
reporting framework, reference to expected form & content
of report to be issued
audit documentation - Answer-written record of work
performed, evidence obtained, & conclusion reached
qualities of audit documentation - Answer-divided into
permanent & current files, supports auditor's
report/opinion, aids in training & conduct/supervision of
audit, provides record of accumulated evidence, indicates
that accounting records reconcile to financial statement,
contains enough info that an experienced auditor with no
prior knowledge of client could understand the work
performed
, 4|Page
audit documentation assembly & retention requirements -
Answer-issuers: documentation must be assembled within
45 days of audit report release & must be kept for 7 years
non-issuers: documentation must be assembled within 60
days of audit report release & must be kept for 5 years
audit documentation is confidential & can only be
disclosed without client permission if - Answer-part of
quality review program, subpoenaed for it, or part of
investigation by AICPA/state CPA society/state statute
those charged with governance - Answer-people who bear
responsibility to oversee obligations & direction of entity
(includes board of directors & audit committee)
audit committee - Answer-members of the board of
directors (usually independent/outside directors) who
aren't employees or part of mgmt & don't have material
financial interests in the company
audit committee functions - Answer-establish control
environment, select & appoint independent auditor, review
quality of auditor's work, respond to auditor
recommendations, help resolve disagreements in
