CPA AUD Exam 2025–2026 Exam Questions
and Correct Answers
A CPA performed the following engagements in February of year 3. Which is
considered an attestation engagement Correct Answer >>>Audit of year 2
and examination of year 4
The following is not an analytical procedure Correct Answer >>>these are
analytical procedures- estimating payroll expense by multiplying the number
of employees by the average wage and number of hours and Developing the
expected current year sales based on the sales trend of the prior five years
Management ability to foresee problems and takes steps in advance to
prevent problems is known as Correct Answer >>>control environment and
control activities Is responsibility of the top management
Internal controls of all of a reporting entity's operating ubits abd business
functions is a primary concern of Correct Answer >>>the entitiys
management and those charged with governance
The auditor is likely to focus the assessment of control risk on the entiys
Correct Answer >>>reporting control and NOT operational controls
The component of internal control that refers to adequate physocal
sageguards and segregation of duties is known Correct Answer >>>control
activities NOT control environment
, An auditor generally test the segregation of duties by Correct Answer
>>>personal inquiry and observation NOT analytical procedures
In the internal control stage an independent audotir searches for control
activities Correct Answer >>>determine whether the opportunities to allow
any person to both perpetrate and conceal fraud are minimized (segregation
of duties) and determine whether procedures and records concerning the
safeguarding of the assets are reliable
An entitys ongoing monitoring activities often include Correct Answer
>>>reviewing the payroll cycle
An auditor gains an understanding on the clients attempt to keep internal
controls up to date this ongoing process of keeping controls effective Correct
Answer >>>refers to the monitoring component of internal control and is
often performed by the internal audit function
The five components of internal control are Correct Answer >>>control
environment, risk assessment, control activities, information and
communication monitoring
In an audit in conformity with GAAS an auditor gains an understanding of the
clients internal controls at this stage needs to be understood Correct Answer
>>>the design og the clients system and whether the controls have been in
operation
In an audit in conformity with GAAS as part of understanding internal
controls an auditor is required to Correct Answer >>>ascertain whether
and Correct Answers
A CPA performed the following engagements in February of year 3. Which is
considered an attestation engagement Correct Answer >>>Audit of year 2
and examination of year 4
The following is not an analytical procedure Correct Answer >>>these are
analytical procedures- estimating payroll expense by multiplying the number
of employees by the average wage and number of hours and Developing the
expected current year sales based on the sales trend of the prior five years
Management ability to foresee problems and takes steps in advance to
prevent problems is known as Correct Answer >>>control environment and
control activities Is responsibility of the top management
Internal controls of all of a reporting entity's operating ubits abd business
functions is a primary concern of Correct Answer >>>the entitiys
management and those charged with governance
The auditor is likely to focus the assessment of control risk on the entiys
Correct Answer >>>reporting control and NOT operational controls
The component of internal control that refers to adequate physocal
sageguards and segregation of duties is known Correct Answer >>>control
activities NOT control environment
, An auditor generally test the segregation of duties by Correct Answer
>>>personal inquiry and observation NOT analytical procedures
In the internal control stage an independent audotir searches for control
activities Correct Answer >>>determine whether the opportunities to allow
any person to both perpetrate and conceal fraud are minimized (segregation
of duties) and determine whether procedures and records concerning the
safeguarding of the assets are reliable
An entitys ongoing monitoring activities often include Correct Answer
>>>reviewing the payroll cycle
An auditor gains an understanding on the clients attempt to keep internal
controls up to date this ongoing process of keeping controls effective Correct
Answer >>>refers to the monitoring component of internal control and is
often performed by the internal audit function
The five components of internal control are Correct Answer >>>control
environment, risk assessment, control activities, information and
communication monitoring
In an audit in conformity with GAAS an auditor gains an understanding of the
clients internal controls at this stage needs to be understood Correct Answer
>>>the design og the clients system and whether the controls have been in
operation
In an audit in conformity with GAAS as part of understanding internal
controls an auditor is required to Correct Answer >>>ascertain whether
