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AUDIT CPA FINAL EXAM NEWEST 2025/2026 NEWEST
ACTUAL EXAM WITH COMPLETE QUESTIONS AND
VERIFIED ANSWERS |ALREADY GRADED A+|
An auditor has not been able to form a conclusion about the
fairness of inventory of a nonissuer. Which section of the
generally accepted auditing standards best outlines the auditor's
response to the failure to achieve an objective stated in a relevant
auditing standard?
Enter your response in the answer fields below. Guidance on
correctly structuring your response appears above and below the
answer fields. - ANSWER-Answer: AU-C 200.29
AU-C Section 200 -- Overall Objectives of the Independent
Auditor and the Conduct of an Audit in Accordance With Generally
Accepted Auditing Standards
Failure to Achieve an Objective
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.29 If an objective in a relevant AU-C section cannot be achieved,
the auditor should evaluate whether this prevents the auditor from
achieving the overall objectives of the auditor and thereby
requires the auditor, in accordance with GAAS, to modify the
auditor's opinion or withdraw from the engagement (when
withdrawal is possible under applicable law or regulation). Failure
to achieve an objective represents a significant finding or issue
requiring documentation in accordance with section 230, Audit
Documentation.
1. The auditor should document the evidence obtained in the
audit. - ANSWER-Presumptively mandatory requirement. The
auditor must comply with a presumptively mandatory requirement
whenever it is relevant, except in rare circumstances. The word
"should" indicates a presumptively mandatory requirement.
2. The auditor must be independent. - ANSWER-Unconditional
requirement. The auditor must comply with an unconditional
requirement whenever it is relevant. The word "must" indicates an
unconditional requirement.
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3. The auditor should test management's assertions relating to the
financial statements. - ANSWER-Presumptively mandatory
requirement. The auditor must comply with a presumptively
mandatory requirement whenever it is relevant, except in rare
circumstances. The word "should" indicates a presumptively
mandatory requirement.
4. The auditor may make suggestions about the form or content of
the financial statements. - ANSWER-Requirement to consider.
The words "may," "might," "could," or similar terms and phrases
describe actions and procedures that the auditor is presumptively
required to consider. Whether the action or procedure is
performed is a matter of professional judgment.
5. In some cases, the auditor could apply one audit procedure to
test more than one assertion. - ANSWER-Requirement to
consider. The words "may," "might," "could," or similar terms and
phrases describe actions and procedures that the auditor is
presumptively required to consider. Whether the action or
procedure is performed is a matter of professional judgment.
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6. The auditor must follow GAAS in an audit of a nonissuer. -
ANSWER-Unconditional requirement. The auditor must comply
with an unconditional requirement whenever it is relevant. The
word "must" indicates an unconditional requirement.
7. The auditor should obtain sufficient appropriate evidence to
support the opinion. - ANSWER-Presumptively mandatory
requirement. The auditor must comply with a presumptively
mandatory requirement whenever it is relevant, except in rare
circumstances. The word "should" indicates a presumptively
mandatory requirement.
Judy Davis, CPA, is considering an auditing standard stating a
presumptively mandatory requirement in an audit of a nonissuer.
However, she has determined that it is impracticable to follow this
guidance. Which section of the generally accepted auditing
standards best outlines the auditor's responsibility?
Enter your response in the answer fields below. Guidance on
correctly structuring your response appears above and below the
answer fields. - ANSWER-Answer: AU-C 200.26
AUDIT CPA FINAL EXAM NEWEST 2025/2026 NEWEST
ACTUAL EXAM WITH COMPLETE QUESTIONS AND
VERIFIED ANSWERS |ALREADY GRADED A+|
An auditor has not been able to form a conclusion about the
fairness of inventory of a nonissuer. Which section of the
generally accepted auditing standards best outlines the auditor's
response to the failure to achieve an objective stated in a relevant
auditing standard?
Enter your response in the answer fields below. Guidance on
correctly structuring your response appears above and below the
answer fields. - ANSWER-Answer: AU-C 200.29
AU-C Section 200 -- Overall Objectives of the Independent
Auditor and the Conduct of an Audit in Accordance With Generally
Accepted Auditing Standards
Failure to Achieve an Objective
, Page |2
.29 If an objective in a relevant AU-C section cannot be achieved,
the auditor should evaluate whether this prevents the auditor from
achieving the overall objectives of the auditor and thereby
requires the auditor, in accordance with GAAS, to modify the
auditor's opinion or withdraw from the engagement (when
withdrawal is possible under applicable law or regulation). Failure
to achieve an objective represents a significant finding or issue
requiring documentation in accordance with section 230, Audit
Documentation.
1. The auditor should document the evidence obtained in the
audit. - ANSWER-Presumptively mandatory requirement. The
auditor must comply with a presumptively mandatory requirement
whenever it is relevant, except in rare circumstances. The word
"should" indicates a presumptively mandatory requirement.
2. The auditor must be independent. - ANSWER-Unconditional
requirement. The auditor must comply with an unconditional
requirement whenever it is relevant. The word "must" indicates an
unconditional requirement.
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3. The auditor should test management's assertions relating to the
financial statements. - ANSWER-Presumptively mandatory
requirement. The auditor must comply with a presumptively
mandatory requirement whenever it is relevant, except in rare
circumstances. The word "should" indicates a presumptively
mandatory requirement.
4. The auditor may make suggestions about the form or content of
the financial statements. - ANSWER-Requirement to consider.
The words "may," "might," "could," or similar terms and phrases
describe actions and procedures that the auditor is presumptively
required to consider. Whether the action or procedure is
performed is a matter of professional judgment.
5. In some cases, the auditor could apply one audit procedure to
test more than one assertion. - ANSWER-Requirement to
consider. The words "may," "might," "could," or similar terms and
phrases describe actions and procedures that the auditor is
presumptively required to consider. Whether the action or
procedure is performed is a matter of professional judgment.
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6. The auditor must follow GAAS in an audit of a nonissuer. -
ANSWER-Unconditional requirement. The auditor must comply
with an unconditional requirement whenever it is relevant. The
word "must" indicates an unconditional requirement.
7. The auditor should obtain sufficient appropriate evidence to
support the opinion. - ANSWER-Presumptively mandatory
requirement. The auditor must comply with a presumptively
mandatory requirement whenever it is relevant, except in rare
circumstances. The word "should" indicates a presumptively
mandatory requirement.
Judy Davis, CPA, is considering an auditing standard stating a
presumptively mandatory requirement in an audit of a nonissuer.
However, she has determined that it is impracticable to follow this
guidance. Which section of the generally accepted auditing
standards best outlines the auditor's responsibility?
Enter your response in the answer fields below. Guidance on
correctly structuring your response appears above and below the
answer fields. - ANSWER-Answer: AU-C 200.26
