CPA EXAM QUESTIONS WITH CORRECT
ANSWERS
Which m of m the m following m procedures m is m ordinarily m performed m by m an m
accountant m in m a m compilation m engagement m of m a m nonissuer?
Reading m the m financial m statements m to m consider m whether m they m are m free m of m
obvious m mistakes m in m the m application m of m accounting m principles.
Obtaining m written m representations m from m management m indicating m that m the m
compiled m financial m statements m will m not m be m used m to m obtain m credit.
Making m inquiries m of m management m concerning m actions m taken m at m meetings m
of m the m stockholders m and m the m board m of m directors.
, Applying m analytical m procedures m designed m to m corroborate m management's m
assertions m that m are m embodied m in m the m financial m statement m components. m - m
correct m answers m -A
. m When m performing m a m review m of m interim m financial m information, m an m
accountant m would m typically m do m each m of m the m following, m except:
Consider m the m results m from m the m latest m audit.
Test m controls m related m to m the m preparation m of m annual m financial m information.
Perform m analytical m procedures.
Make m inquiries m of m management. m - m correct m answers m -B
If m requested m to m perform m a m compilation m engagement m for m a m nonissuer m in m
which m an m accountant m has m an m immaterial m direct m financial m interest, m the m
accountant m is:
Independent m because m the m financial m interest m in m the m nonissuer m is m
immaterial.
Not m independent m and, m therefore, m may m not m be m associated m with m the m
financial m statements.
Not m independent m and, m therefore, m may m not m issue m a m compilation m report.
Not m independent m and, m therefore, m may m issue m a m compilation m report, m but m
may m not m issue m a m review m report. m - m correct m answers m -D
Which m of m the m following m should m a m practitioner m perform m as m part m of m an m
engagement m for m agreed-upon m procedures m in m accordance m with m Statements m
on m Standards m for m Attestation m Engagements?
Issue m a m report m on m findings m based m on m specified m procedures m performed.
Assess m whether m the m procedures m meet m the m needs m of m the m parties.
Express m negative m assurance m on m findings m of m work m performed.
Report m the m differences m between m agreed-upon m and m audit m procedures m - m
correct m answers m -A
5. m Which m of m the m following m conditions m or m events m most m likely m would m
cause m an m auditor m to m have m substantial m doubt m about m an m entity's m ability m to
m continue m as m a m going m concern?
ANSWERS
Which m of m the m following m procedures m is m ordinarily m performed m by m an m
accountant m in m a m compilation m engagement m of m a m nonissuer?
Reading m the m financial m statements m to m consider m whether m they m are m free m of m
obvious m mistakes m in m the m application m of m accounting m principles.
Obtaining m written m representations m from m management m indicating m that m the m
compiled m financial m statements m will m not m be m used m to m obtain m credit.
Making m inquiries m of m management m concerning m actions m taken m at m meetings m
of m the m stockholders m and m the m board m of m directors.
, Applying m analytical m procedures m designed m to m corroborate m management's m
assertions m that m are m embodied m in m the m financial m statement m components. m - m
correct m answers m -A
. m When m performing m a m review m of m interim m financial m information, m an m
accountant m would m typically m do m each m of m the m following, m except:
Consider m the m results m from m the m latest m audit.
Test m controls m related m to m the m preparation m of m annual m financial m information.
Perform m analytical m procedures.
Make m inquiries m of m management. m - m correct m answers m -B
If m requested m to m perform m a m compilation m engagement m for m a m nonissuer m in m
which m an m accountant m has m an m immaterial m direct m financial m interest, m the m
accountant m is:
Independent m because m the m financial m interest m in m the m nonissuer m is m
immaterial.
Not m independent m and, m therefore, m may m not m be m associated m with m the m
financial m statements.
Not m independent m and, m therefore, m may m not m issue m a m compilation m report.
Not m independent m and, m therefore, m may m issue m a m compilation m report, m but m
may m not m issue m a m review m report. m - m correct m answers m -D
Which m of m the m following m should m a m practitioner m perform m as m part m of m an m
engagement m for m agreed-upon m procedures m in m accordance m with m Statements m
on m Standards m for m Attestation m Engagements?
Issue m a m report m on m findings m based m on m specified m procedures m performed.
Assess m whether m the m procedures m meet m the m needs m of m the m parties.
Express m negative m assurance m on m findings m of m work m performed.
Report m the m differences m between m agreed-upon m and m audit m procedures m - m
correct m answers m -A
5. m Which m of m the m following m conditions m or m events m most m likely m would m
cause m an m auditor m to m have m substantial m doubt m about m an m entity's m ability m to
m continue m as m a m going m concern?
