Exam 1 CPA Exam Questions With 100% Verified Solutions 2024
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Course
CPA
Institution
CPA
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 capa...
Exam 1 CPA Exam Questions With 100%
Verified Solutions 2024
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? - Correct Answer - 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 - Correct
Answer - 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? - Correct Answer - Every three years.
An attestation engagement is one in which a CPA is engaged to - Correct Answer -
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: - Correct Answer - 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? - Correct Answer -
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? -
Correct Answer - Selling real estate at a price that differs significantly from its market
value.
When auditing related party transactions, an auditor places primary emphasis on -
Correct Answer - 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? - Correct Answer - Comparing the current year's financial
statements with those of the prior year
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