Auditing Final Exam Flash Cards -
Module 1 questions well answered
2025/2026
#2: Which of the following is a conceptual difference between the attestation standards and
generally accepted auditing standards?
a. The attestation standards do not apply to audits of historical financial statements, while
generally accepted auditing standards do.
b. The requirement that the practitioner be independent in mental attitude is omitted from the
attestation standards.
c. The attestation standards do not permit an attest engagement to be part of a business
acquisition study or a feasibility study.
d. The attestation standards include reviews, while generally accepted auditing standards do
not. - correct answer ✔✔A. The attestation standards do not apply to audits of historical
financial statements, while generally accepted auditing standards do.
#3: Which of the following is NOT an attestation standard?
a. Sufficient evidence shall be obtained to provide a reasonable basis for the conclusion that is
expressed in the report.
b. The report shall identify the subject matter on the assertion being reported on and state the
character of the engagement.
c. The work shall be adequately planned and assistants, if any, shall be properly supervised.
d. A sufficient understanding of internal control shall be obtained to plan the engagement. -
correct answer ✔✔D. A sufficient understanding of internal control shall be obtained to plan
the engagement.
, #4: Which of the following is MOST likely to be unique to the audit work of CPA's as compared
to work performed by practitioners of other professions?
a. Due professional care
b. Competence
c. Independence
d. Complex body of knowledge - correct answer ✔✔C. Independence
#9: According to the standards of the profession, which of the following circumstances will
prevent a CPA performing audit engagements from being independent?
A. Obtaining a collateralized automobile loan from a financial institution client.
B. Litigation with a client relating to billing for consulting services for which the amount is
immaterial.
C. Employment of the CPA's spouse as a client's director of internal audit.
D. Acting as an honorary trustee for a not-for-profit organization client. - correct answer ✔✔C.
Employment of the CPA's spouse as a client's director of internal audit
#10: The profession's ethical standards MOST likely would be considered to have been violated
when a CPA represents that specific consulting services will be performed for a stated fee and it
is apparent at the time of the representation that the:
a. Actual fee would be substantially higher
b. Actual fee would be substantially lower than the fees charged by other CPAs for comparable
services
c. CPA would not be independent
d. Fee was a competitive bid - correct answer ✔✔A. Actual fee would be substantially higher
Module 1 questions well answered
2025/2026
#2: Which of the following is a conceptual difference between the attestation standards and
generally accepted auditing standards?
a. The attestation standards do not apply to audits of historical financial statements, while
generally accepted auditing standards do.
b. The requirement that the practitioner be independent in mental attitude is omitted from the
attestation standards.
c. The attestation standards do not permit an attest engagement to be part of a business
acquisition study or a feasibility study.
d. The attestation standards include reviews, while generally accepted auditing standards do
not. - correct answer ✔✔A. The attestation standards do not apply to audits of historical
financial statements, while generally accepted auditing standards do.
#3: Which of the following is NOT an attestation standard?
a. Sufficient evidence shall be obtained to provide a reasonable basis for the conclusion that is
expressed in the report.
b. The report shall identify the subject matter on the assertion being reported on and state the
character of the engagement.
c. The work shall be adequately planned and assistants, if any, shall be properly supervised.
d. A sufficient understanding of internal control shall be obtained to plan the engagement. -
correct answer ✔✔D. A sufficient understanding of internal control shall be obtained to plan
the engagement.
, #4: Which of the following is MOST likely to be unique to the audit work of CPA's as compared
to work performed by practitioners of other professions?
a. Due professional care
b. Competence
c. Independence
d. Complex body of knowledge - correct answer ✔✔C. Independence
#9: According to the standards of the profession, which of the following circumstances will
prevent a CPA performing audit engagements from being independent?
A. Obtaining a collateralized automobile loan from a financial institution client.
B. Litigation with a client relating to billing for consulting services for which the amount is
immaterial.
C. Employment of the CPA's spouse as a client's director of internal audit.
D. Acting as an honorary trustee for a not-for-profit organization client. - correct answer ✔✔C.
Employment of the CPA's spouse as a client's director of internal audit
#10: The profession's ethical standards MOST likely would be considered to have been violated
when a CPA represents that specific consulting services will be performed for a stated fee and it
is apparent at the time of the representation that the:
a. Actual fee would be substantially higher
b. Actual fee would be substantially lower than the fees charged by other CPAs for comparable
services
c. CPA would not be independent
d. Fee was a competitive bid - correct answer ✔✔A. Actual fee would be substantially higher
