Exam 1 CPA Exam Questions and answers
The Sarbanes-Oxley Act of 2002 imposes a mandatory rotation applicable to both the audit
engagement partner and the quality control (also called review) partner. How long in total is the
partner allowed to serve as the engagement partner or review partner before someone else must
serve in that capacity? - 5 years.
An entity engaged a CPA to determine whether the client's web sites meet defined criteria for
standard business practices and controls over transaction integrity and information protection.
In performing this engagement, the CPA should comply with the provisions of - Statements on
Standards for Attestation Engagements.
At least how often should the PCAOB inspect a registered public accounting firm that regularly issues
audit reports to 50 issuers? - Every three years.
An attestation engagement is one in which a CPA is engaged to - Issue a written communication
expressing a conclusion about the reliability of a written assertion that is the responsibility of
another party.
The Public Company Accounting Oversight Board (PCAOB) is charged with all of the following
responsibilities except: - Establishing accounting standards for public companies.
Under the Sarbanes-Oxley Act of 2002, which of the following is not a stated responsibility of the
Public Company Accounting Oversight Board? - Issuing accounting standards that must be followed
by issuers in financial reporting.
Which of the following events most likely indicates the existence of related parties? - Selling real
estate at a price that differs significantly from its market value.
When auditing related party transactions, an auditor places primary emphasis on - Evaluating the
disclosure of the related party transactions.
Which of the following activities is an analytical procedure an auditor would perform in the final
overall review stage of an audit to ensure that the financial statements are free from material
misstatement? - Comparing the current year's financial statements with those of the prior year
The Sarbanes-Oxley Act of 2002 imposes a mandatory rotation applicable to both the audit
engagement partner and the quality control (also called review) partner. How long in total is the
partner allowed to serve as the engagement partner or review partner before someone else must
serve in that capacity? - 5 years.
An entity engaged a CPA to determine whether the client's web sites meet defined criteria for
standard business practices and controls over transaction integrity and information protection.
In performing this engagement, the CPA should comply with the provisions of - Statements on
Standards for Attestation Engagements.
At least how often should the PCAOB inspect a registered public accounting firm that regularly issues
audit reports to 50 issuers? - Every three years.
An attestation engagement is one in which a CPA is engaged to - Issue a written communication
expressing a conclusion about the reliability of a written assertion that is the responsibility of
another party.
The Public Company Accounting Oversight Board (PCAOB) is charged with all of the following
responsibilities except: - Establishing accounting standards for public companies.
Under the Sarbanes-Oxley Act of 2002, which of the following is not a stated responsibility of the
Public Company Accounting Oversight Board? - Issuing accounting standards that must be followed
by issuers in financial reporting.
Which of the following events most likely indicates the existence of related parties? - Selling real
estate at a price that differs significantly from its market value.
When auditing related party transactions, an auditor places primary emphasis on - Evaluating the
disclosure of the related party transactions.
Which of the following activities is an analytical procedure an auditor would perform in the final
overall review stage of an audit to ensure that the financial statements are free from material
misstatement? - Comparing the current year's financial statements with those of the prior year
