ACC 630 - AUDIT PRACTICE EXAM 2025
QUESTIONS AND ANSWERS
Martina Juarez is auditing the inventory of Tecumseh Plastics. Martina references GAAS to help
her plan her procedures. Which of the following best describes Martina's responsibility in this
scenario?
a. Planning and performing the audit with professional skepticism
b. Planning and performing the audit with professional judgment
c. Ensuring the information included in the financial statements is presented fairly and complies
with the applicable financial reporting framework
d. Conducting the audit in accordance with appropriate auditing standards - ANS d.
Conducting the audit in accordance with appropriate auditing standards
In the United States, how do public companies differ from private companies in audit
requirements?
a. Public companies are required to have an annual integrated audit whereas private companies
are required to have an annual financial statement audit.
b. Public companies but not private companies are required to have an annual financial audit.
c. Public companies but not private companies are required to have an annual integrated audit.
d. Public companies are required to have an annual financial statement audit whereas private
companies are required to have an annual internal controls over financial reporting (ICFR)
audit. - ANS b. Public companies but not private companies are required to have an annual
financial audit.
Which of the following would best meet the requirements of independence for assurance
services?
a. The Chief Financial Officer for the entity
b. An Independent Financial Analyst
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,c. A CPA from Capital City, An Independent Audit and Assurance Services Firm
d. The Chairperson for the entity's Audit Committee - ANS c. A CPA from Capital City, An
Independent Audit and Assurance Services Firm
Shen Yu is interested in determining whether their packaging supplier will survive the next
economic downturn. Shen is most likely which type of financial statement user?
a. Lender
b. Investor
c. Customer
d. Supplier - ANS c. Customer
How are assurance, attestation, and audit services similar?
a. All involve a review of financial statements.
b. All can be handled by any professional who has met the educational requirements set by a
state board of education.
c. All can only be handled by a certified public accountant (CPA).
d. All result in a written report about the results. - ANS d. All result in a written report about
the results.
Which section of the CPA exam contains written communication items?
a. Financial Accounting and Reporting (FAR)
b. Auditing and Attestation (AUD)
c. Regulation (REG)
d. Business Environment and Concepts (BEC) - ANS d. Business Environment and Concepts
(BEC)
Which certification represents the only licensed accounting professionals in the United States?
a. CPA
b. CIA
c. CFE
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,d. CMA - ANS a. CPA
When an independent practitioner is hired to report on the integrity of financial statements,
which may include financial forecasts or reports on financial reporting processes, it is
considered what type of service?
a. Attestation
b. Integrity
c. Assurance
d. Audit - ANS a. Attestation
In the United States, a state board of accountancy issues a license to practice to aspirants who
have
a. a bachelor's degree and some experience.
b. two years of relevant experience.
c. earned all three E's: education, exam, and experience.
d. passed any three parts of the CPA exam. - ANS c. earned all three E's: education, exam,
and experience
Regarding assurance services, the term _______ ensures that practitioners were not involved
with the creation of financial information and that they can remain objective.
a. intended user
b. independent
c. quality
d. decision maker - ANS b. independent
What type of engagement is performed by a practitioner to provide limited assurance that
financial statements need no material modifications?
a. Assurance
b. Audit
c. Compilation
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, d. Review - ANS
Which of the following describes a compliance audit?
a. An audit that combines the financial statement audit with an audit of the effectiveness of
ICFR
b. A function within an entity that evaluates and improves risk management, internal controls,
and governance
c. Concerned with the economy, efficiency, and effectiveness of an organization's activities
d. Gathering evidence to determine whether the person or entity under review has followed
applicable rules, policies, procedures, laws, and regulations - ANS d. Gathering evidence to
determine whether the person or entity under review has followed applicable rules, policies,
procedures, laws, and regulations
Aarav is an employee of HLC Building, Co. He is currently evaluating and improving risk
management for the construction division. Which type of audit is Aarav most likely working on?
a. Operational audit
b. Financial statement audit
c. Compliance audit
d. Internal audit - ANS d. Internal audit
Gene Cosby is an IRS agent. He is currently gathering evidence regarding the income tax
deductions of G&M Operations, Inc. Which type of audit is Gene most likely working on?
a. Financial statement audit
b. Compliance audit
c. Operational audit
d. Internal audit - ANS b. Compliance audit
What is an example of an audit service?
a. A practitioner conducts a review of historical financial statements.
b. A certified public accountant (CPA) provides an opinion on whether a financial statement is
presented fairly and in accordance with an applicable financial reporting framework.
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4
QUESTIONS AND ANSWERS
Martina Juarez is auditing the inventory of Tecumseh Plastics. Martina references GAAS to help
her plan her procedures. Which of the following best describes Martina's responsibility in this
scenario?
a. Planning and performing the audit with professional skepticism
b. Planning and performing the audit with professional judgment
c. Ensuring the information included in the financial statements is presented fairly and complies
with the applicable financial reporting framework
d. Conducting the audit in accordance with appropriate auditing standards - ANS d.
Conducting the audit in accordance with appropriate auditing standards
In the United States, how do public companies differ from private companies in audit
requirements?
a. Public companies are required to have an annual integrated audit whereas private companies
are required to have an annual financial statement audit.
b. Public companies but not private companies are required to have an annual financial audit.
c. Public companies but not private companies are required to have an annual integrated audit.
d. Public companies are required to have an annual financial statement audit whereas private
companies are required to have an annual internal controls over financial reporting (ICFR)
audit. - ANS b. Public companies but not private companies are required to have an annual
financial audit.
Which of the following would best meet the requirements of independence for assurance
services?
a. The Chief Financial Officer for the entity
b. An Independent Financial Analyst
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1
,c. A CPA from Capital City, An Independent Audit and Assurance Services Firm
d. The Chairperson for the entity's Audit Committee - ANS c. A CPA from Capital City, An
Independent Audit and Assurance Services Firm
Shen Yu is interested in determining whether their packaging supplier will survive the next
economic downturn. Shen is most likely which type of financial statement user?
a. Lender
b. Investor
c. Customer
d. Supplier - ANS c. Customer
How are assurance, attestation, and audit services similar?
a. All involve a review of financial statements.
b. All can be handled by any professional who has met the educational requirements set by a
state board of education.
c. All can only be handled by a certified public accountant (CPA).
d. All result in a written report about the results. - ANS d. All result in a written report about
the results.
Which section of the CPA exam contains written communication items?
a. Financial Accounting and Reporting (FAR)
b. Auditing and Attestation (AUD)
c. Regulation (REG)
d. Business Environment and Concepts (BEC) - ANS d. Business Environment and Concepts
(BEC)
Which certification represents the only licensed accounting professionals in the United States?
a. CPA
b. CIA
c. CFE
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2
,d. CMA - ANS a. CPA
When an independent practitioner is hired to report on the integrity of financial statements,
which may include financial forecasts or reports on financial reporting processes, it is
considered what type of service?
a. Attestation
b. Integrity
c. Assurance
d. Audit - ANS a. Attestation
In the United States, a state board of accountancy issues a license to practice to aspirants who
have
a. a bachelor's degree and some experience.
b. two years of relevant experience.
c. earned all three E's: education, exam, and experience.
d. passed any three parts of the CPA exam. - ANS c. earned all three E's: education, exam,
and experience
Regarding assurance services, the term _______ ensures that practitioners were not involved
with the creation of financial information and that they can remain objective.
a. intended user
b. independent
c. quality
d. decision maker - ANS b. independent
What type of engagement is performed by a practitioner to provide limited assurance that
financial statements need no material modifications?
a. Assurance
b. Audit
c. Compilation
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3
, d. Review - ANS
Which of the following describes a compliance audit?
a. An audit that combines the financial statement audit with an audit of the effectiveness of
ICFR
b. A function within an entity that evaluates and improves risk management, internal controls,
and governance
c. Concerned with the economy, efficiency, and effectiveness of an organization's activities
d. Gathering evidence to determine whether the person or entity under review has followed
applicable rules, policies, procedures, laws, and regulations - ANS d. Gathering evidence to
determine whether the person or entity under review has followed applicable rules, policies,
procedures, laws, and regulations
Aarav is an employee of HLC Building, Co. He is currently evaluating and improving risk
management for the construction division. Which type of audit is Aarav most likely working on?
a. Operational audit
b. Financial statement audit
c. Compliance audit
d. Internal audit - ANS d. Internal audit
Gene Cosby is an IRS agent. He is currently gathering evidence regarding the income tax
deductions of G&M Operations, Inc. Which type of audit is Gene most likely working on?
a. Financial statement audit
b. Compliance audit
c. Operational audit
d. Internal audit - ANS b. Compliance audit
What is an example of an audit service?
a. A practitioner conducts a review of historical financial statements.
b. A certified public accountant (CPA) provides an opinion on whether a financial statement is
presented fairly and in accordance with an applicable financial reporting framework.
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4
