100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
CPA Practice Exam Questions &Answers. 100% Accurate CA$13.69   Add to cart
Quickly navigate to
Preview
  2.  
  3. CPA
  4.  
  5. CPA
  6.  
  7. CPA

Exam (elaborations)

CPA Practice Exam Questions &Answers. 100% Accurate
 2 views  0 purchase
  • Institution
  • CPA

CPA Practice Exam Questions &Answers. 100% Accurate When a CPA examines a client's projected financial statements, the CPA's report should: - -state that the CPA performed procedures to evaluate management's assumptions. Davis, CPA, accepted an engagement to audit the financial statements o...

[Show more]

Preview 2 out of 12  pages

Document information

  • August 10, 2023
  • 12
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • cpa practice exam questions ampanswers 100 accurat

Written for

All documents for this subject (821)

Seller

avatar-seller
PassPoint02

Reviews received

Content preview

CPA Practice Exam Questions
&Answers. 100% Accurate

When a CPA examines a client's projected financial statements, the CPA's report should: - ✔✔-state that
the CPA performed procedures to evaluate management's assumptions.



Davis, CPA, accepted an engagement to audit the financial statements of Tech Resources, a nonpublic
entity. Before the completion of the audit, Tech requested Davis to change the engagement to a
compilation of financial statements. Before Davis agrees to change the engagement, Davis is required to
consider the:



additional audit effort necessary to complete the audit.

reason given for Tech's request. - ✔✔-Both I and II



The GAO standards list several threats to independence. The threat of familiarity is defined as: - ✔✔-
when, due to a long or close relationship with management or other personnel, the auditor will be too
sympathetic or accepting of work.



Which of the following representations does an accountant make implicitly when issuing the standard
report for the compilation of a nonissuer's financial statements? - ✔✔-The accountant is independent
with respect to the entity.



Heath Co.'s current ratio is 4:1. Which of the following transactions would normally increase its current
ratio? - ✔✔-Selling inventory on account



According to the AICPA Code of Professional Conduct, what would a covered member most
appropriately do upon learning that another member of an attest engagement team is considering
employment with the client? - ✔✔-Notify an appropriate person in the firm.



Which of the following factors most likely would assist an independent auditor in assessing the
objectivity of the internal auditor? - ✔✔-The organizational status of the director of internal audit

, If the business environment is experiencing a recession, the auditor most likely would focus increased
attention on which of the following accounts? - ✔✔-Allowance for doubtful accounts



An auditor is reporting on condensed financial statements for an annual period that are derived from
the audited financial statements of an issuer. The auditor's opinion should indicate whether the
information in the condensed financial statements is fairly stated in all material respects: - ✔✔-in
relation to the complete financial statements.



An auditor observes the mailing of monthly statements to a client's customers and reviews evidence of
follow-up on errors reported by the customers. This test of controls most likely is performed to support
management's financial statement assertion of: - ✔✔-existence.



North Co., a privately held entity, asked its tax accountant, King, a CPA in public practice, to review and
generate North's interim financial statements on King's microcomputer when King prepared North's
quarterly tax return. King should not submit these financial statements to North unless, as a minimum,
King complies with the provisions of: - ✔✔-Statements on Standards for Accounting and Review
Services.



An auditor's report would be designated an audit of a special-purpose financial statement when it is
issued in connection with: - ✔✔-a basis of accounting that the entity uses to comply with an agreement
between the entity and one or more third parties other than the auditor.



An auditor most likely would not rely on controls if the payroll department supervisor is responsible for:
- ✔✔-authorizing payroll rate changes for all employees.



Which of the following levels would most likely address the risk of material misstatement by the
auditor's consideration of an entity's control environment? - ✔✔-Financial statements



Which of the following would most likely be associated with obtaining an understanding of relevant
internal factors when satisfying the obligation to understand the entity and its environment on an audit?
- ✔✔-Revenue recognition practices

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller PassPoint02. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$13.69. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

64438 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$13.69
  • (0)
  Add to cart