D215 Auditing, Pre-Assesment PA exam
review 2024
Which type of work performed by a CPA is an attestation service? - correct answer
✅Financial statement review
Which entity may obtain audited financial statements to ensure a company is
complying with industry regulations? - correct answer ✅Governments
Which group performs an audit and review of financial statements to ensure
financial statement users' needs are met? - correct answer ✅Independent third-
party auditors
Which type of report should be issued if an auditor has determined that a
company has maintained effective internal controls over financial reporting for the
period under audit? - correct answer ✅Unqualified
A new CPA is aware of how accounting affects stakeholders.
Which characteristic of professionalism is motivating this awareness? - correct
answer ✅Concern for the public interest
,D215 Auditing, Pre-Assesment PA exam
review 2024
Which component of the AICPA Code of Professional Conduct provides the tenets
of ethical conduct that govern the professional responsibility of its members? -
correct answer ✅Principles
A CPA firm provides tax services for a large automotive client. Over the years, the
client has continually pushed for aggressive tax strategies that the CPA does not
always agree with.
While performing the current year tax return, the client threatens to discontinue
the relationship with the CPA firm if they continue to disagree with the strategies
presented.
Which type of threat to ethical decision-making is demonstrated by this practice?
- correct answer ✅Undue influence
A CPA has prepared a couple's joint tax returns for 10 years, but the couple is now
experiencing a complicated divorce where both parties wish to claim the same
child as a dependent. The CPA agrees to work with both clients on their tax
returns.
, D215 Auditing, Pre-Assesment PA exam
review 2024
Which standard of the AICPA Code of Professional Conduct is being violated by
this CPA's action? - correct answer ✅Integrity and Objectivity
A large client asks a CPA firm for consulting help with their quarterly sales and use
tax reporting. The CPA firm specializes in audit and tax preparation and has not
dealt with this type of work in the past but would like to add it. The firm decides
to accept the job.
Which step is required to maintain compliance with the general standards of the
AICPA Code of Professional Conduct? - correct answer ✅The CPA firm must send
the CPAs to a continuing professional education course on sales and use tax
reporting.
A junior accountant is providing tax and audit services to a large company that is
pressuring the accountant to reduce the amount of taxes the company owes. The
junior accountant decides to use last year's tax laws instead of the current year's
laws since the older laws will save the company money.
Which general standard of the AICPA Code of Professional Conduct is the junior
accountant violating? - correct answer ✅Due Professional Care
review 2024
Which type of work performed by a CPA is an attestation service? - correct answer
✅Financial statement review
Which entity may obtain audited financial statements to ensure a company is
complying with industry regulations? - correct answer ✅Governments
Which group performs an audit and review of financial statements to ensure
financial statement users' needs are met? - correct answer ✅Independent third-
party auditors
Which type of report should be issued if an auditor has determined that a
company has maintained effective internal controls over financial reporting for the
period under audit? - correct answer ✅Unqualified
A new CPA is aware of how accounting affects stakeholders.
Which characteristic of professionalism is motivating this awareness? - correct
answer ✅Concern for the public interest
,D215 Auditing, Pre-Assesment PA exam
review 2024
Which component of the AICPA Code of Professional Conduct provides the tenets
of ethical conduct that govern the professional responsibility of its members? -
correct answer ✅Principles
A CPA firm provides tax services for a large automotive client. Over the years, the
client has continually pushed for aggressive tax strategies that the CPA does not
always agree with.
While performing the current year tax return, the client threatens to discontinue
the relationship with the CPA firm if they continue to disagree with the strategies
presented.
Which type of threat to ethical decision-making is demonstrated by this practice?
- correct answer ✅Undue influence
A CPA has prepared a couple's joint tax returns for 10 years, but the couple is now
experiencing a complicated divorce where both parties wish to claim the same
child as a dependent. The CPA agrees to work with both clients on their tax
returns.
, D215 Auditing, Pre-Assesment PA exam
review 2024
Which standard of the AICPA Code of Professional Conduct is being violated by
this CPA's action? - correct answer ✅Integrity and Objectivity
A large client asks a CPA firm for consulting help with their quarterly sales and use
tax reporting. The CPA firm specializes in audit and tax preparation and has not
dealt with this type of work in the past but would like to add it. The firm decides
to accept the job.
Which step is required to maintain compliance with the general standards of the
AICPA Code of Professional Conduct? - correct answer ✅The CPA firm must send
the CPAs to a continuing professional education course on sales and use tax
reporting.
A junior accountant is providing tax and audit services to a large company that is
pressuring the accountant to reduce the amount of taxes the company owes. The
junior accountant decides to use last year's tax laws instead of the current year's
laws since the older laws will save the company money.
Which general standard of the AICPA Code of Professional Conduct is the junior
accountant violating? - correct answer ✅Due Professional Care
