CPA EXAM A+ GRADE ASSURED COMPLETE SOLUTIONS AND VERIFIED ANSWERS

ATI EXAM @x




Exam Solution @x




CPA Exam Review: Audit and Attestation Section 2 202
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6 A+ GRADE ASSURED COMPLETE SOLUTIONS AND VE
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RIFIED ANSWERS (28974) @x @x




QUESTION 1 @x




Which of the following is required documentation in an audit in accordance with gen
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erally accepted auditing standards?
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ANSWER

An audit plan setting forth in detail the procedures necessary to accomplish the engagement's objec
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tives



QUESTION 2 @x




After obtaining an understanding of the entity and its environment and assessing the
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risk of material misstatement, an auditor decided to perform tests of controls. The a
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uditor most likely decided that:
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ANSWER

it would be efficient to perform tests of controls that would result in a reduction in planned substa
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ntive tests. @x




QUESTION 3 @x




Audit programs should be designed so that:
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ANSWER

the audit evidence gathered supports the auditor's conclusions.
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QUESTION 4 @x




In designing a written audit plan, an auditor should establish specific audit objectives
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that relate primarily to the:
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,ANSWER

Financial Statement assertions @x @x




QUESTION 5 @x




The permanent file of an auditor's working papers generally would not include:
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ANSWER

a working trial balance.
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QUESTION 6 @x




In addition to descriptions of the nature, timing, and extent of planned risk assessme
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nt procedures and planned further audit procedures, which of the following additiona
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l pieces of information should be documented in the audit plan?
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ANSWER

Other audit procedures to be performed to comply with generally accepted auditing standards
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QUESTION 7 @x




A written audit plan is required to be prepared by an auditor for:
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ANSWER

Every audit @x




QUESTION 8 @x




An auditor who performed analytical procedures that compared current-
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year financial information to the comparable prior period noted a significant increase
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in net income. Given this result, which of the following expectations of recorded am
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ounts would be unreasonable?
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ANSWER

A decrease in retained earnings
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QUESTION 9 @x




An auditor should design the written audit plan so that:
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ANSWER

the audit procedures selected will achieve specific audit objectives.
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, QUESTION 10 @x




Which of the following factors most likely would influence an auditor's determination
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of the auditability of an entity's financial statements?
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ANSWER

The adequacy of the accounting records
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QUESTION 11 @x




An accountant was asked by a potential client to perform a compilation of its financi
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al statements. The accountant is not familiar with the industry in which the client op
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erates. In this situation, which of the following actions is the accountant most likely t
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o take?
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ANSWER

Accept the engagement and obtain an adequate level of knowledge about the industry
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QUESTION 12 @x




To compile financial statements, the accountant should possess a general understandi
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ng of the nature of the entity's operations. This most likely will include which of the
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following?
ANSWER

Stated qualifications of the entity's accounting personnel
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QUESTION 13 @x




When planning a review of an audit client's interim financial statements, which of th
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e following procedures should the accountant perform to update the accountant's kno
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wledge about the entity's business and its internal control?
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ANSWER

Consider the results of audit procedures performed with respect to the current year's financial stat
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ements



QUESTION 14 @x




Which of the following procedures would an auditor least likely perform in planning
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a financial statement audit?
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ANSWER