CPA- Audit Test Questions and Answers Graded A+
Statements on Auditing standards (SAS) - Answers Nonissuers
PCAOB AS - Answers Issuers
GAGAS - Answers Govt auditing standards
SSARS - Answers Unaudited FS info for nonissuers
Interpretive publications - Answers - How SASs should be applied in specific situations
- Not considered auditing standards
Audit process - Answers Engagement Acceptance --> Assess Risk and Plan Response -->
Perform procedures and obtain evidence --> Form conclusions --> Reporting
Auditor responsibilities - Answers - Expressing an opinion
- Professional skepticism
- Complying with ethical requirements
- Professional judgement
- Obtaining sufficient, appropriate evidence
- Complying with GAAS
To obtain reasonable assurance: - Answers Auditor must:
- Plan the work, supervise assistants
- Appropriate materiality
- Identify, assess risks of material misstatement
- Obtain sufficient appropriate audit evidence
FS Audit - Objectives - Answers - To report on FS
- To obtain reasonable assurance about whether FS are free from material misstatement
Unmodified opinion - Answers Nonissuers
Unqualified opinion - Answers Issuers
Audit report: Nonissuer - Answers Title
Addressee
,Intro
Management's responsibility: MR DIM
Auditor's responsibility: REPPORTS CRAME
Auditor's opinion
Other reporting responsibilities
Audit report: Issuer - Answers Title
Addressee
Intro: RR
SCOPE: AA PP MM EE AA MM
Opinion
Form AP - Answers Filed by issuer with the PCAOB
Accountant associated with unaudited FS - Answers Disclaim an opinion
Disclaimer of opinion: Issuer - Answers Scope paragraph is omitted
Going concern - Answers Emphasis of matter paragraph
Justified change in accounting principle - Answers Emphasis of matter paragraph
Subsequent facts leading to change in opinion - Answers Emphasis of matter paragraph OR
Other matter paragraph
Use of special purpose framework - Answers Emphasis of matter paragraph
Restricted use of auditor's report - Answers Other matter paragraph
Predecessor's report is not reissued - Answers Other matter paragraph
Current statements with unaudited prior statements - Answers Other matter paragraph
Material inconsistency that management refuses to revise - Answers Other matter paragraph
Supplementary info- Auditor - Answers - Other matter paragraph OR
- Separate report
Use restricted due to Contractual/regulatory basis - Answers Other matter paragraph
Report on compliance included - Answers Other matter paragraph
, Explanatory paragraph before opinion when - Answers - FS are prepared in accordance with a
special purpose framework
- Prior year audit opinion is updated
Explanatory paragraph: required - Answers - FS are prepared in accordance with a special
purpose framework
- Prior year audit opinion is updated
- Substantial doubt about going concern
- Material change between periods in acct principles
- Previous material misstatement is corrected
- Other info is materially inconsistent from FS
- Selected quarterly data required by SEC is omitted
- RSI has been omitted
Change in estimate inseparable from principle - Answers Emphasis of matter/explanatory
paragraph
Updating prior opinion - Answers D ate of previous report
O pinion previously issued
R eason for prior opinion
C hanges that have occurred
S tatement that the opinion... is different
Predecessor report issued: Predecessor auditor should: - Answers - Read statements for the
current period
- Compare previously audited with current period statements
- Obtain letter of rep from successor auditor
- Inquire, letter of rep from management
Predecessor report not issued: New CPA should - Answers Other matter paragraph (nonissuer)
/ introductory paragraph (issuer):
- That prior period was audited by predecessor
Statements on Auditing standards (SAS) - Answers Nonissuers
PCAOB AS - Answers Issuers
GAGAS - Answers Govt auditing standards
SSARS - Answers Unaudited FS info for nonissuers
Interpretive publications - Answers - How SASs should be applied in specific situations
- Not considered auditing standards
Audit process - Answers Engagement Acceptance --> Assess Risk and Plan Response -->
Perform procedures and obtain evidence --> Form conclusions --> Reporting
Auditor responsibilities - Answers - Expressing an opinion
- Professional skepticism
- Complying with ethical requirements
- Professional judgement
- Obtaining sufficient, appropriate evidence
- Complying with GAAS
To obtain reasonable assurance: - Answers Auditor must:
- Plan the work, supervise assistants
- Appropriate materiality
- Identify, assess risks of material misstatement
- Obtain sufficient appropriate audit evidence
FS Audit - Objectives - Answers - To report on FS
- To obtain reasonable assurance about whether FS are free from material misstatement
Unmodified opinion - Answers Nonissuers
Unqualified opinion - Answers Issuers
Audit report: Nonissuer - Answers Title
Addressee
,Intro
Management's responsibility: MR DIM
Auditor's responsibility: REPPORTS CRAME
Auditor's opinion
Other reporting responsibilities
Audit report: Issuer - Answers Title
Addressee
Intro: RR
SCOPE: AA PP MM EE AA MM
Opinion
Form AP - Answers Filed by issuer with the PCAOB
Accountant associated with unaudited FS - Answers Disclaim an opinion
Disclaimer of opinion: Issuer - Answers Scope paragraph is omitted
Going concern - Answers Emphasis of matter paragraph
Justified change in accounting principle - Answers Emphasis of matter paragraph
Subsequent facts leading to change in opinion - Answers Emphasis of matter paragraph OR
Other matter paragraph
Use of special purpose framework - Answers Emphasis of matter paragraph
Restricted use of auditor's report - Answers Other matter paragraph
Predecessor's report is not reissued - Answers Other matter paragraph
Current statements with unaudited prior statements - Answers Other matter paragraph
Material inconsistency that management refuses to revise - Answers Other matter paragraph
Supplementary info- Auditor - Answers - Other matter paragraph OR
- Separate report
Use restricted due to Contractual/regulatory basis - Answers Other matter paragraph
Report on compliance included - Answers Other matter paragraph
, Explanatory paragraph before opinion when - Answers - FS are prepared in accordance with a
special purpose framework
- Prior year audit opinion is updated
Explanatory paragraph: required - Answers - FS are prepared in accordance with a special
purpose framework
- Prior year audit opinion is updated
- Substantial doubt about going concern
- Material change between periods in acct principles
- Previous material misstatement is corrected
- Other info is materially inconsistent from FS
- Selected quarterly data required by SEC is omitted
- RSI has been omitted
Change in estimate inseparable from principle - Answers Emphasis of matter/explanatory
paragraph
Updating prior opinion - Answers D ate of previous report
O pinion previously issued
R eason for prior opinion
C hanges that have occurred
S tatement that the opinion... is different
Predecessor report issued: Predecessor auditor should: - Answers - Read statements for the
current period
- Compare previously audited with current period statements
- Obtain letter of rep from successor auditor
- Inquire, letter of rep from management
Predecessor report not issued: New CPA should - Answers Other matter paragraph (nonissuer)
/ introductory paragraph (issuer):
- That prior period was audited by predecessor
