CPA AUD EXAM WITH COMPLETE SOLUTIONS
LATEST UPDATE 100% CORRECT
Which of the following standards-setting bodies has the authority to issue auditing
standards for financial statement audits - ANSWER Auditing and standards board not
the PCOB
Whenever an independent expert is brought in to examine financial statements with the
hopes of adding credibility that engagement and reporting process id known as an -
ANSWER Attestation NOT an Audit nothing in the question refers to an audit
A CPA performed the following engagements in February of year 3. which is considered
an attestation engagement - ANSWER Audit of year 2 and examination of year 4
After an audit the financial statements are the responsibility of - ANSWER the
management of the reporting company
According to the generally accepted auditing reporting standards, which of the
following has to be expressed in a standard auditor's report?
ANSWER In a standard report, the fact that the client disclosures and footnotes are
adequate need not to be reported and the consistent accounting principles does not
apply.
Laura is a covered member in an audit engagement. Which of the following cannot work
in any capacity for a company being audited by Laura? ANSWER Spouse and dependent
child of the covered member may work for the company provided there is no influence
on the financial statements.
with respect to covered member of audit engagement - ANSWER would not be permitted
even if a dependent child holds stock in the audit client even if child was less than age
five no financial holding permissible unless it is indirect in nature such as a mutual fund
, would have violated the profession's standards for independence most likely when -
ANSWER CPA issued a second year audit without collecting payment for the first year
In an audit of financial statements of a non-issuer in accordance with Generally
accepted auditing standards, an auditor is required to - ANSWER Document the
auditors understanding of the entity's internal control structure. NOT preform test of
controls to evaluate effectiveness of the entity;s accounting system(only need for
Publicly traded companies)
the following attestation engagements does a CPA gather evidence and then provide an
opinion regarding fair presentation of financial information - ANSWER examination of
forward-looking financial information and audits of historic financial information
the following should be considered by a CPA prior to acceptance of an audit
engagement of a non issuer - ANSWER The quality of the accounting records and the
future plans of the company
Questions of the predecessor auditor prior to acceptance of the engagement should
include inquiries about the following - ANSWER integrity of management and
disagreements with management
CPA should decide not to accept a new client for an audit engagement if - ANSWER
neither 1. the CPA lacks understanding of the client's industry and 2. the clients
management had unusually high turnover
the procedure that an auditor likely perform in the planning stage of a financial
statement audit - ANSWER obtaining a sign engagement letter from the client's
management. examining documents is done in the investigation stage
the procedures likely to be performed in the planning stage of an audit - ANSWER
determining the extent of involvement of specialists and internal auditors
LATEST UPDATE 100% CORRECT
Which of the following standards-setting bodies has the authority to issue auditing
standards for financial statement audits - ANSWER Auditing and standards board not
the PCOB
Whenever an independent expert is brought in to examine financial statements with the
hopes of adding credibility that engagement and reporting process id known as an -
ANSWER Attestation NOT an Audit nothing in the question refers to an audit
A CPA performed the following engagements in February of year 3. which is considered
an attestation engagement - ANSWER Audit of year 2 and examination of year 4
After an audit the financial statements are the responsibility of - ANSWER the
management of the reporting company
According to the generally accepted auditing reporting standards, which of the
following has to be expressed in a standard auditor's report?
ANSWER In a standard report, the fact that the client disclosures and footnotes are
adequate need not to be reported and the consistent accounting principles does not
apply.
Laura is a covered member in an audit engagement. Which of the following cannot work
in any capacity for a company being audited by Laura? ANSWER Spouse and dependent
child of the covered member may work for the company provided there is no influence
on the financial statements.
with respect to covered member of audit engagement - ANSWER would not be permitted
even if a dependent child holds stock in the audit client even if child was less than age
five no financial holding permissible unless it is indirect in nature such as a mutual fund
, would have violated the profession's standards for independence most likely when -
ANSWER CPA issued a second year audit without collecting payment for the first year
In an audit of financial statements of a non-issuer in accordance with Generally
accepted auditing standards, an auditor is required to - ANSWER Document the
auditors understanding of the entity's internal control structure. NOT preform test of
controls to evaluate effectiveness of the entity;s accounting system(only need for
Publicly traded companies)
the following attestation engagements does a CPA gather evidence and then provide an
opinion regarding fair presentation of financial information - ANSWER examination of
forward-looking financial information and audits of historic financial information
the following should be considered by a CPA prior to acceptance of an audit
engagement of a non issuer - ANSWER The quality of the accounting records and the
future plans of the company
Questions of the predecessor auditor prior to acceptance of the engagement should
include inquiries about the following - ANSWER integrity of management and
disagreements with management
CPA should decide not to accept a new client for an audit engagement if - ANSWER
neither 1. the CPA lacks understanding of the client's industry and 2. the clients
management had unusually high turnover
the procedure that an auditor likely perform in the planning stage of a financial
statement audit - ANSWER obtaining a sign engagement letter from the client's
management. examining documents is done in the investigation stage
the procedures likely to be performed in the planning stage of an audit - ANSWER
determining the extent of involvement of specialists and internal auditors
