D215 Auditing Extra Practice Set with Solutions for
AICPA FC: Risk Assessment and Management 2025-
2026 Western Governors University
1. Identify a service that falls under audit services.
A. examination of historical financial statements
B. compilation of historical financial statements
C. inspection of website security
D. review of financial forecast
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Measurement Analysis and
Interpretation, AACSB: Ethics, Learning Objective: LO1.1, Solution: Examination of historical
financial statements comes under audit services.
2. Compared to an audit of historical financial statements, a review engagement is
.
A. less extensive and also less expensive
B. more extensive and also more expensive
C. less extensive but more expensive
D. more extensive but less expensive
Answer: A, Taxonomy: Comprehension, Difficulty: Easy, AICPA FC: Measurement Analysis and
Interpretation, AACSB: Ethics, Learning Objective: LO1.1, Solution: In a review engagement, the
practitioner expresses limited assurance that no material modifications need to be made to the
financial statements. So a review of historical financial statements is a less extensive, and
therefore, less expensive service that can be very useful for smaller private companies.
3. Assurance, attestation, and auditing are similar because all three represent a
common process of .
A. taking information prepared by someone else and comparing that information
to an established set of criteria.
B. compiling and reviewing historical financial statements and providing non-
financial information.
C. compiling historical financial statements and providing non-financial
information and web security.
,D. reviewing financial forecast, examining internal controls, and providing website
security.
Answer: A, Taxonomy: Comprehension, Difficulty: Easy, AICPA FC: Reporting, AACSB:
Communication, Learning Objective: LO1.1, Solution: The terms assurance, attestation, and
auditing are sometimes used interchangeably, but they actually represent different types of
services. They are similar because they all represent a common process of an independent
accounting firm taking information prepared by someone else and comparing that information to
an established set of criteria.
, 4. Which of the following is included as a focus of assurance services?
A. Compilation of historical financial statements
B. Examination of internal controls
C. Review of historical financial statements
D. Review of financial forecast
Answer: C, Taxonomy: Comprehension, Difficulty: Easy, AICPA FC: Reporting, AACSB: Analytic,
Learning Objective: LO1.1, Solution: A review is a type of assurance service.
5. Which of the following is a characteristic of an audit of historical financial
statements?
A. It provides limited assurance that no material modifications need to be made to the
financial statements.
B. It expresses an opinion on the fair presentation of the financial statements.
C. It is the same as an examination of internal controls.
D. It is broader than a review engagement.
Answer: B, Taxonomy: Comprehension Application, Difficulty: Easy, AICPA FC: Reporting,
AACSB: Analytic, Learning Objective: LO1.1, Solution: An audit expresses an opinion on the
fair presentation of the financial statements.
6. Interpretations provide additional guidance regarding the scope and applicability of
the .
A. rules of conduct
B. standards
C. conceptual framework
D. principles
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA BB: Global and Industry Perspectives,
AACSB: Ethics, Learning Objective: LO2.2, Solution: Interpretations provide additional guidance
regarding the scope and applicability of the rules of conduct.
7. Which of the following provides guidance to all members of the AICPA with respect
to performance of their professional responsibilities?
A. Code of Professional Conduct
B. Rules of Conduct
C. Principles
D. Interpretations
AICPA FC: Risk Assessment and Management 2025-
2026 Western Governors University
1. Identify a service that falls under audit services.
A. examination of historical financial statements
B. compilation of historical financial statements
C. inspection of website security
D. review of financial forecast
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA FC: Measurement Analysis and
Interpretation, AACSB: Ethics, Learning Objective: LO1.1, Solution: Examination of historical
financial statements comes under audit services.
2. Compared to an audit of historical financial statements, a review engagement is
.
A. less extensive and also less expensive
B. more extensive and also more expensive
C. less extensive but more expensive
D. more extensive but less expensive
Answer: A, Taxonomy: Comprehension, Difficulty: Easy, AICPA FC: Measurement Analysis and
Interpretation, AACSB: Ethics, Learning Objective: LO1.1, Solution: In a review engagement, the
practitioner expresses limited assurance that no material modifications need to be made to the
financial statements. So a review of historical financial statements is a less extensive, and
therefore, less expensive service that can be very useful for smaller private companies.
3. Assurance, attestation, and auditing are similar because all three represent a
common process of .
A. taking information prepared by someone else and comparing that information
to an established set of criteria.
B. compiling and reviewing historical financial statements and providing non-
financial information.
C. compiling historical financial statements and providing non-financial
information and web security.
,D. reviewing financial forecast, examining internal controls, and providing website
security.
Answer: A, Taxonomy: Comprehension, Difficulty: Easy, AICPA FC: Reporting, AACSB:
Communication, Learning Objective: LO1.1, Solution: The terms assurance, attestation, and
auditing are sometimes used interchangeably, but they actually represent different types of
services. They are similar because they all represent a common process of an independent
accounting firm taking information prepared by someone else and comparing that information to
an established set of criteria.
, 4. Which of the following is included as a focus of assurance services?
A. Compilation of historical financial statements
B. Examination of internal controls
C. Review of historical financial statements
D. Review of financial forecast
Answer: C, Taxonomy: Comprehension, Difficulty: Easy, AICPA FC: Reporting, AACSB: Analytic,
Learning Objective: LO1.1, Solution: A review is a type of assurance service.
5. Which of the following is a characteristic of an audit of historical financial
statements?
A. It provides limited assurance that no material modifications need to be made to the
financial statements.
B. It expresses an opinion on the fair presentation of the financial statements.
C. It is the same as an examination of internal controls.
D. It is broader than a review engagement.
Answer: B, Taxonomy: Comprehension Application, Difficulty: Easy, AICPA FC: Reporting,
AACSB: Analytic, Learning Objective: LO1.1, Solution: An audit expresses an opinion on the
fair presentation of the financial statements.
6. Interpretations provide additional guidance regarding the scope and applicability of
the .
A. rules of conduct
B. standards
C. conceptual framework
D. principles
Answer: A, Taxonomy: Knowledge, Difficulty: Easy, AICPA BB: Global and Industry Perspectives,
AACSB: Ethics, Learning Objective: LO2.2, Solution: Interpretations provide additional guidance
regarding the scope and applicability of the rules of conduct.
7. Which of the following provides guidance to all members of the AICPA with respect
to performance of their professional responsibilities?
A. Code of Professional Conduct
B. Rules of Conduct
C. Principles
D. Interpretations
