CPA AUD (Auditing & Attestation)
Practice Exam – 100 Questions &
Answers Plus Rationales Latest 2026/27
Graded A Instant Pdf Download
Question 1
Which of the following is the primary objective of an audit of financial
statements?
A. To detect all fraud
B. To provide absolute assurance
C. To express an opinion on the fairness of presentation
D. To prepare the financial statements
Correct Answer: C – The primary objective of an audit is to obtain
reasonable assurance and express an opinion on whether the financial
statements are fairly presented in accordance with the applicable
financial reporting framework.
Question 2
Which assertion relates to whether all transactions have been recorded?
A. Existence
B. Completeness
,C. Rights and obligations
D. Valuation
Correct Answer: B – The completeness assertion ensures that all
transactions and accounts that should be recorded are included in the
financial statements.
Question 3
What is the auditor's responsibility regarding internal control?
A. Design controls
B. Maintain controls
C. Evaluate design and implementation
D. Eliminate control risk
Correct Answer: C – Auditors evaluate the design and implementation
of internal controls but do not design or maintain them.
Question 4
Which of the following is NOT part of the COSO internal control
framework components?
A. Control environment
B. Risk assessment
C. Marketing strategy
D. Monitoring activities
Correct Answer: C – Marketing strategy is not a component of the
COSO internal control framework.
Question 5
An auditor tests accounts payable primarily for which assertion?
,A. Existence
B. Completeness
C. Valuation
D. Rights
Correct Answer: B – Completeness ensures all liabilities are recorded,
which is especially important for accounts payable.
Question 6
Which assertion is most directly tested when an auditor vouches
recorded sales to shipping documents?
A. Completeness
B. Occurrence
C. Rights & Obligations
D. Valuation
Correct Answer: B – Vouching ensures that recorded transactions
actually occurred (occurrence assertion).
Question 7
Analytical procedures are most effective for detecting:
A. Fraud
B. Account balances misstatements
C. Deviations from expected trends
D. Internal control weaknesses
Correct Answer: C – Analytical procedures identify unusual or
unexpected relationships, which may indicate errors or fraud.
, Question 8
Materiality in an audit is determined based on:
A. Only quantitative factors
B. Only qualitative factors
C. Both quantitative and qualitative factors
D. Management preference
Correct Answer: C – Materiality is determined using both quantitative
and qualitative factors.
Question 9
A CPA should not submit unaudited financial statements of a nonpublic
company to a client or others unless, at a minimum, the CPA complies
with the provisions applicable to:
A. Compilation engagements
B. Review engagements
C. Statements on auditing standards
D. Attestation standards
Correct Answer: A – An accountant should not submit such information
unless he or she has, at a minimum, complied with the provisions
applicable to a compilation engagement.
Question 10
Which of the following represents an appropriate overall response to an
increase in financial statement level risk?
A. Changing the general approach of the audit to ensure control testing
of all significant accounts
B. Providing management with more specific details about audit
sampling procedures
C. Shifting substantive procedures to interim
D. Increasing the level of supervision
Practice Exam – 100 Questions &
Answers Plus Rationales Latest 2026/27
Graded A Instant Pdf Download
Question 1
Which of the following is the primary objective of an audit of financial
statements?
A. To detect all fraud
B. To provide absolute assurance
C. To express an opinion on the fairness of presentation
D. To prepare the financial statements
Correct Answer: C – The primary objective of an audit is to obtain
reasonable assurance and express an opinion on whether the financial
statements are fairly presented in accordance with the applicable
financial reporting framework.
Question 2
Which assertion relates to whether all transactions have been recorded?
A. Existence
B. Completeness
,C. Rights and obligations
D. Valuation
Correct Answer: B – The completeness assertion ensures that all
transactions and accounts that should be recorded are included in the
financial statements.
Question 3
What is the auditor's responsibility regarding internal control?
A. Design controls
B. Maintain controls
C. Evaluate design and implementation
D. Eliminate control risk
Correct Answer: C – Auditors evaluate the design and implementation
of internal controls but do not design or maintain them.
Question 4
Which of the following is NOT part of the COSO internal control
framework components?
A. Control environment
B. Risk assessment
C. Marketing strategy
D. Monitoring activities
Correct Answer: C – Marketing strategy is not a component of the
COSO internal control framework.
Question 5
An auditor tests accounts payable primarily for which assertion?
,A. Existence
B. Completeness
C. Valuation
D. Rights
Correct Answer: B – Completeness ensures all liabilities are recorded,
which is especially important for accounts payable.
Question 6
Which assertion is most directly tested when an auditor vouches
recorded sales to shipping documents?
A. Completeness
B. Occurrence
C. Rights & Obligations
D. Valuation
Correct Answer: B – Vouching ensures that recorded transactions
actually occurred (occurrence assertion).
Question 7
Analytical procedures are most effective for detecting:
A. Fraud
B. Account balances misstatements
C. Deviations from expected trends
D. Internal control weaknesses
Correct Answer: C – Analytical procedures identify unusual or
unexpected relationships, which may indicate errors or fraud.
, Question 8
Materiality in an audit is determined based on:
A. Only quantitative factors
B. Only qualitative factors
C. Both quantitative and qualitative factors
D. Management preference
Correct Answer: C – Materiality is determined using both quantitative
and qualitative factors.
Question 9
A CPA should not submit unaudited financial statements of a nonpublic
company to a client or others unless, at a minimum, the CPA complies
with the provisions applicable to:
A. Compilation engagements
B. Review engagements
C. Statements on auditing standards
D. Attestation standards
Correct Answer: A – An accountant should not submit such information
unless he or she has, at a minimum, complied with the provisions
applicable to a compilation engagement.
Question 10
Which of the following represents an appropriate overall response to an
increase in financial statement level risk?
A. Changing the general approach of the audit to ensure control testing
of all significant accounts
B. Providing management with more specific details about audit
sampling procedures
C. Shifting substantive procedures to interim
D. Increasing the level of supervision
