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Audit CPA Final Exam 2025 – Updated Study Guide,
Practice Questions & Simulations for CPA Auditing
and Attestation (AUD) Section
Prepare for the 2025 Audit CPA Final Exam (AUD) with the latest study materials,
practice simulations, and detailed answer explanations. Covers audit procedures, internal
controls, risk assessment, ethics, and professional responsibilities. Ideal for CPA candidates
looking to pass the Auditing and Attestation section with confidence.
• Audit CPA Final Exam 2025
• CPA AUD Final Exam study guide
• CPA Audit practice questions 2025
• CPA Auditing and Attestation exam prep
1. Requires accounting firms to appropriately consider the risk of providing services - ANSWER-SQCSs.
Statements on Quality Control Standards list six elements of a quality control system. The third element,
acceptance and continuance of client relationships and specific engagements, requires firms to
appropriately consider the risk of performing services.
2. Issued by the AICPA to set guidelines for performing a compilation - ANSWER-SSARS. Statements on
Standards for Accounting and Review Services apply to compilations.
3. Mandates that a second partner review and approve audit reports - ANSWER-SOX. Sarbanes-Oxley
was created, in part, to improve the quality control of audits. One of its provisions is to require a second
review and approval by another partner in the auditing firm.
4. Defines the process of undertaking an audit engagement for nonissuers - ANSWER-GAAS. GAAS (SASs)
are issued by the ASB, the senior technical committee of the AICPA designated to issue standards on
,2|Page
auditing matters for nonissuers. The Compliance with Standards Rule of the Code of Professional
Conduct requires an AICPA member who audits a nonissuer to comply with GAAS.
5. Requires the accountant to have reason to believe that the assertion is measurable in terms that are
suitable to the users of the assertion - ANSWER-SSAEs. A practitioner must have reason to believe that
the subject matter is capable of evaluation against criteria that are suitable and available to users.
6. Describes six elements the CPA firms must consider - ANSWER-SQCSs. Statements on Quality Control
Standards list six elements of a quality control system.
7. Defines audit requirements for issuers - ANSWER-SOX. Sarbanes-Oxley is federal legislation that
requires issuers to be audited by registered public accountants.
8. The accountant makes recommendations based on the objectives of the engagement - ANSWER-
SSCSs. Statements on Standards for Consulting Services describe responsibilities of a practitioner who
develops findings, conclusions, and recommendations based solely on the agreement with the client.
The work ordinarily is only for the use and benefit of the client.
9. Issued by the AICPA to set guidelines to offer limited assurance on historical financial statements -
ANSWER-SSARS. Statements on Standards for Accounting and Review Services apply to reviews of
historical financial statements. Reviews offer limited assurance.
10. The subject of the AICPA's clarity project for audits - ANSWER-GAAS. A new Codification of
Statements on Auditing Standards was adopted to clarify GAAS.
1. Independence is not required for this service. - ANSWER-Consulting. Independence is not required to
provide consulting services. Independence is required by attestation standards and is included in the
definition of assurance services.
2. This service results in a written conclusion about subject matter. - ANSWER-Attestation. Attestation
results in a written conclusion about subject matter or a written assertion of another party. Its objective
is to provide reliable information.
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3. This service improves the quality of information, or its context, for decision makers. - ANSWER-
Assurance and advisory. Assurance and advisory services provide better information for decision makers,
which leads to better decision making.
4. This service provides recommendations based on the objectives of the engagement. - ANSWER-
Consulting. Consulting services provide recommendations based on the objectives of the engagement.
The goal is to provide better outcomes.
5. This service provides for a level of assurance based on an examination. - ANSWER-Attestation.
Attestation services can provide assurance based on an examination, a review, or the results of agreed-
upon procedures.
Compilation - ANSWER-Column A: Independence not required; Column B: No assurance provided. The
accountant provides no assurance and is not required to be independent. But the accountant must (a)
determine whether (s)he is independent and (b) issue a report.
Preparation - ANSWER-Column A: Independence not required; Column B: No assurance provided. The
accountant provides no assurance. Moreover, the accountant is not required to (a) be independent, (b)
determine whether (s)he is independent, or (c) issue a report.
Review - ANSWER-Column A: Independence required; Column B: Limited assurance provided. The
accountant provides limited assurance and is required to be independent.
Audit - ANSWER-Column A: Independence required; Column B: Positive assurance provided. The
accountant (a) provides positive assurance, (b) is required to be independent, and (c) issues a report.
Agreed-upon procedures - ANSWER-Column A: Independence required; Column B: Neither positive nor
limited assurance provided but results of procedures provided. The accountant (a) provides neither
positive nor limited assurance, (b) is required to be independent, and (c) issues a report.
An auditor has not been able to form a conclusion about the fairness of inventory of a nonissuer. Which
section of the generally accepted auditing standards best outlines the auditor's response to the failure to
achieve an objective stated in a relevant auditing standard?
Audit CPA Final Exam 2025 – Updated Study Guide,
Practice Questions & Simulations for CPA Auditing
and Attestation (AUD) Section
Prepare for the 2025 Audit CPA Final Exam (AUD) with the latest study materials,
practice simulations, and detailed answer explanations. Covers audit procedures, internal
controls, risk assessment, ethics, and professional responsibilities. Ideal for CPA candidates
looking to pass the Auditing and Attestation section with confidence.
• Audit CPA Final Exam 2025
• CPA AUD Final Exam study guide
• CPA Audit practice questions 2025
• CPA Auditing and Attestation exam prep
1. Requires accounting firms to appropriately consider the risk of providing services - ANSWER-SQCSs.
Statements on Quality Control Standards list six elements of a quality control system. The third element,
acceptance and continuance of client relationships and specific engagements, requires firms to
appropriately consider the risk of performing services.
2. Issued by the AICPA to set guidelines for performing a compilation - ANSWER-SSARS. Statements on
Standards for Accounting and Review Services apply to compilations.
3. Mandates that a second partner review and approve audit reports - ANSWER-SOX. Sarbanes-Oxley
was created, in part, to improve the quality control of audits. One of its provisions is to require a second
review and approval by another partner in the auditing firm.
4. Defines the process of undertaking an audit engagement for nonissuers - ANSWER-GAAS. GAAS (SASs)
are issued by the ASB, the senior technical committee of the AICPA designated to issue standards on
,2|Page
auditing matters for nonissuers. The Compliance with Standards Rule of the Code of Professional
Conduct requires an AICPA member who audits a nonissuer to comply with GAAS.
5. Requires the accountant to have reason to believe that the assertion is measurable in terms that are
suitable to the users of the assertion - ANSWER-SSAEs. A practitioner must have reason to believe that
the subject matter is capable of evaluation against criteria that are suitable and available to users.
6. Describes six elements the CPA firms must consider - ANSWER-SQCSs. Statements on Quality Control
Standards list six elements of a quality control system.
7. Defines audit requirements for issuers - ANSWER-SOX. Sarbanes-Oxley is federal legislation that
requires issuers to be audited by registered public accountants.
8. The accountant makes recommendations based on the objectives of the engagement - ANSWER-
SSCSs. Statements on Standards for Consulting Services describe responsibilities of a practitioner who
develops findings, conclusions, and recommendations based solely on the agreement with the client.
The work ordinarily is only for the use and benefit of the client.
9. Issued by the AICPA to set guidelines to offer limited assurance on historical financial statements -
ANSWER-SSARS. Statements on Standards for Accounting and Review Services apply to reviews of
historical financial statements. Reviews offer limited assurance.
10. The subject of the AICPA's clarity project for audits - ANSWER-GAAS. A new Codification of
Statements on Auditing Standards was adopted to clarify GAAS.
1. Independence is not required for this service. - ANSWER-Consulting. Independence is not required to
provide consulting services. Independence is required by attestation standards and is included in the
definition of assurance services.
2. This service results in a written conclusion about subject matter. - ANSWER-Attestation. Attestation
results in a written conclusion about subject matter or a written assertion of another party. Its objective
is to provide reliable information.
, 3|Page
3. This service improves the quality of information, or its context, for decision makers. - ANSWER-
Assurance and advisory. Assurance and advisory services provide better information for decision makers,
which leads to better decision making.
4. This service provides recommendations based on the objectives of the engagement. - ANSWER-
Consulting. Consulting services provide recommendations based on the objectives of the engagement.
The goal is to provide better outcomes.
5. This service provides for a level of assurance based on an examination. - ANSWER-Attestation.
Attestation services can provide assurance based on an examination, a review, or the results of agreed-
upon procedures.
Compilation - ANSWER-Column A: Independence not required; Column B: No assurance provided. The
accountant provides no assurance and is not required to be independent. But the accountant must (a)
determine whether (s)he is independent and (b) issue a report.
Preparation - ANSWER-Column A: Independence not required; Column B: No assurance provided. The
accountant provides no assurance. Moreover, the accountant is not required to (a) be independent, (b)
determine whether (s)he is independent, or (c) issue a report.
Review - ANSWER-Column A: Independence required; Column B: Limited assurance provided. The
accountant provides limited assurance and is required to be independent.
Audit - ANSWER-Column A: Independence required; Column B: Positive assurance provided. The
accountant (a) provides positive assurance, (b) is required to be independent, and (c) issues a report.
Agreed-upon procedures - ANSWER-Column A: Independence required; Column B: Neither positive nor
limited assurance provided but results of procedures provided. The accountant (a) provides neither
positive nor limited assurance, (b) is required to be independent, and (c) issues a report.
An auditor has not been able to form a conclusion about the fairness of inventory of a nonissuer. Which
section of the generally accepted auditing standards best outlines the auditor's response to the failure to
achieve an objective stated in a relevant auditing standard?
