BECKER CPA AUD EXAM |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which of the following matters generally is included in an auditor's engagement letter?
a. management's responsibility for the fair presentation of the financial statements.
b. the auditor's responsibility to search for significant internal control deficiencies.
c. management's vicarious liability for violations of laws and regulations committed by its
employees.
d. the factors to be considered in setting preliminary judgement about materiality.
CORRECT ANSWER
a. management's responsibility for the fair presentation of the financial statements.
Question 2
A successor auditor should request the new client to authorize the predecessor auditor to
allow a review of the predecessor's:
a. engagement letter YES; working papers YES.
b. engagement letter NO; working papers NO.
c. engagement letter NO; working papers YES.
d. engagement letter YES; working papers NO.
CORRECT ANSWER
c. engagement letter NO; working papers YES.
1
,Question 3
Each of the following identifies one of the principal purposes of an auditor's
communication with those charged with governance, EXCEPT:
a. to provide an overview of the scope and timing of the audit.
b. to obtain information relevant to the audit.
c. to obtain approval of the planned scope of the audit procedures.
d. to report timely observations arising from the audit that are relevant to the
responsibilities of those overseeing the financial reporting process.
CORRECT ANSWER
c. to obtain approval of the planned scope of the audit procedures.
Question 4
The primary objective of an auditor when considering the acceptance of an initial audit
engagement of a nonissue is to:
a. establish whether the preconditions for an audit are present.
b. specify the degree to which management intends to rely on the auditor's testing of
internal controls.
c. limit the auditor's responsibility if management fails to provide written representations.
d. agree with management on the timing of tests at interim and year end.
CORRECT ANSWER
a. establish whether the preconditions for an audit are present.
Question 5
Under which of the following circumstances, if any, can an auditor who is NOT
independent perform an audit engagement of a nonissuer?
2
,a. the auditor has performed the financial statement audit in multiple prior years.
b. the auditor is precluded from accepting the engagement and reporting on the financial
statements under any circumstances.
c. the auditor's lack of independence is NOT due to financial reasons.
d. the auditor is required by law to accept the engagement and report on the financial
statements.
CORRECT ANSWER
d. the auditor is required by law to accept the engagement and report on the financial
statements.
Question 6
Before accepting an audit engagement, a CPA should evaluate whether conditions exist
that raise questions as to the integrity of management. Which of the following conditions
most likely would raise such questions?
a. there are significant differences between the entity's forecasted financial statements and
the financial statements to be audited.
b. the CPA becomes aware of the existence of related party transactions while reading the
draft financial statements.
c. there have been substantial write-offs just before the year-end in each of the past four
years.
d. the CPA will NOT be permitted to have access to sensitive information regarding the
salaries of senior management.
CORRECT ANSWER
d. the CPA will NOT be permitted to have access to sensitive information regarding the
salaries of senior management.
Question 7
3
, Which of the following factors most likely would lead a CPA to conclude that a potential
audit engagement should NOT be accepted?
a. there are significant related party transactions that management claims occurred in the
ordinary course of business.
b. it is unlikely that sufficient appropriate audit evidence is available to support an opinion
on the financial statements.
c. management continues to employ an inefficient system of information technology to
record financial transactions.
d. internal control activities requiring the segregation of duties are subject to management
override.
CORRECT ANSWER
b. it is unlikely that sufficient appropriate audit evidence is available to support an
opinion on the financial statements.
Question 8
An auditor's engagement letter most likely would include a statement regarding:
a. management's responsibility to provide the certain written representations to the auditor.
b. material matters that could modify the auditor's preliminary assessment of fraud risk.
c. internal control activities that would reduce the auditor's assessment of risk.
d. conditions under which the auditor may modify the preliminary judgement about
materiality.
CORRECT ANSWER
a. management's responsibility to provide the certain written representations to the
auditor.
Question 9
4
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which of the following matters generally is included in an auditor's engagement letter?
a. management's responsibility for the fair presentation of the financial statements.
b. the auditor's responsibility to search for significant internal control deficiencies.
c. management's vicarious liability for violations of laws and regulations committed by its
employees.
d. the factors to be considered in setting preliminary judgement about materiality.
CORRECT ANSWER
a. management's responsibility for the fair presentation of the financial statements.
Question 2
A successor auditor should request the new client to authorize the predecessor auditor to
allow a review of the predecessor's:
a. engagement letter YES; working papers YES.
b. engagement letter NO; working papers NO.
c. engagement letter NO; working papers YES.
d. engagement letter YES; working papers NO.
CORRECT ANSWER
c. engagement letter NO; working papers YES.
1
,Question 3
Each of the following identifies one of the principal purposes of an auditor's
communication with those charged with governance, EXCEPT:
a. to provide an overview of the scope and timing of the audit.
b. to obtain information relevant to the audit.
c. to obtain approval of the planned scope of the audit procedures.
d. to report timely observations arising from the audit that are relevant to the
responsibilities of those overseeing the financial reporting process.
CORRECT ANSWER
c. to obtain approval of the planned scope of the audit procedures.
Question 4
The primary objective of an auditor when considering the acceptance of an initial audit
engagement of a nonissue is to:
a. establish whether the preconditions for an audit are present.
b. specify the degree to which management intends to rely on the auditor's testing of
internal controls.
c. limit the auditor's responsibility if management fails to provide written representations.
d. agree with management on the timing of tests at interim and year end.
CORRECT ANSWER
a. establish whether the preconditions for an audit are present.
Question 5
Under which of the following circumstances, if any, can an auditor who is NOT
independent perform an audit engagement of a nonissuer?
2
,a. the auditor has performed the financial statement audit in multiple prior years.
b. the auditor is precluded from accepting the engagement and reporting on the financial
statements under any circumstances.
c. the auditor's lack of independence is NOT due to financial reasons.
d. the auditor is required by law to accept the engagement and report on the financial
statements.
CORRECT ANSWER
d. the auditor is required by law to accept the engagement and report on the financial
statements.
Question 6
Before accepting an audit engagement, a CPA should evaluate whether conditions exist
that raise questions as to the integrity of management. Which of the following conditions
most likely would raise such questions?
a. there are significant differences between the entity's forecasted financial statements and
the financial statements to be audited.
b. the CPA becomes aware of the existence of related party transactions while reading the
draft financial statements.
c. there have been substantial write-offs just before the year-end in each of the past four
years.
d. the CPA will NOT be permitted to have access to sensitive information regarding the
salaries of senior management.
CORRECT ANSWER
d. the CPA will NOT be permitted to have access to sensitive information regarding the
salaries of senior management.
Question 7
3
, Which of the following factors most likely would lead a CPA to conclude that a potential
audit engagement should NOT be accepted?
a. there are significant related party transactions that management claims occurred in the
ordinary course of business.
b. it is unlikely that sufficient appropriate audit evidence is available to support an opinion
on the financial statements.
c. management continues to employ an inefficient system of information technology to
record financial transactions.
d. internal control activities requiring the segregation of duties are subject to management
override.
CORRECT ANSWER
b. it is unlikely that sufficient appropriate audit evidence is available to support an
opinion on the financial statements.
Question 8
An auditor's engagement letter most likely would include a statement regarding:
a. management's responsibility to provide the certain written representations to the auditor.
b. material matters that could modify the auditor's preliminary assessment of fraud risk.
c. internal control activities that would reduce the auditor's assessment of risk.
d. conditions under which the auditor may modify the preliminary judgement about
materiality.
CORRECT ANSWER
a. management's responsibility to provide the certain written representations to the
auditor.
Question 9
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