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AICPA Questions With Complete Solutions
AICPA Questions With Complete Solutions
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AICPA Questions With Complete SolutionsAudit engagement team members should remain alert for evidence of
noncompliance with which of the following relevant ethical requirements?
A. Maintaining a suspicious attitude, presuming that the client is dishonest
until evidence proves otherwise
B. Performing professional responsibilities with the highest sense of
integrity.
C. Performing audit procedures efficiently and within expected time
budgets.
D.. Maintaining confidentiality of client information by not including it in
the audit documentation. Correct Ans - Choice "B" is correct. A CPA
should perform professional responsibilities with the highest sense of
integrity. Audit engagement team members should remain alert for
evidence of noncompliance with this ethical requirement.
According to the AICPA Code of Professional Conduct, which of the
following records must a CPA return to the client when requested?
A. Client-provided records, even if fees are due to the CPA for the
engagement and are unpaid.
B. Client-provided records requested for a second time because the client
misplaced the first set of records
C. Supporting records prepared by the CPA consisting of adjusting, closing,
combining, or consolidating entries prior to the completion of the
engagement.
D.The CPA's working papers consisting of analyses and schedules prepared
by the client at the CPA's request. Correct Ans - Choice "A" is
correct. A CPA must return client-provided records when requested by the
client, even if unpaid fees are due to the CPA for the engagement.
Which of the following is a requirement for accepting an attestation
engagement to report on the controls at a service organization?
A. The description of the controls is completed prior to the signing of the
engagement letter.
B. The service auditor has the competence and capability to perform the
engagement.
C. The suitability of the evaluation criteria is reviewed by a third party.
D. Management agrees that the service auditor will be responsible for
documenting the controls. Correct Ans - Choice "B" is correct. A
, requirement for accepting an attestation engagement to report on the
controls at a service organization is that the service auditor has the
competence and capability to perform the engagement.
An accountant agreed to perform a compilation of a company's financial
statements under Statements of Standards for Accounting and Review
Services (SSARS). During fieldwork, the accountant decided to perform
some analytical procedures. Which of the following would the accountant
do related to the compilation engagement?
A. Issue a review report because review procedures were performed.
B. Issue an audit report because audit procedures were performed.
C. Withdraw from the engagement because review procedures were
performed on a compilation engagement.
D. Issue a compilation report even though review procedures were
performed on the engagement. Correct Ans - Choice "D" is correct.
An accountant should issue a compilation report even though review
procedures were performed on the engagement because the accountant
was engaged to perform a compilation engagement. An accountant is not
required, but may, perform other procedures, such as analytical
procedures, to verify information supplied by management.
Which of the following constitutes a potential risk associated with the use
of information technology in an entity's internal control structure?
A. A reduction in the ability to monitor the entity's activities.
B. The facilitation of additional analyses.
C. A reduction in the circumvention of controls.
D. Unauthorized changes to systems. Correct Ans - Choice "D" is
correct. A potential risk associated with the use of information technology
in an entity's internal control structure is unauthorized changes to systems.
In planning an audit, an auditor should document in the working papers
the auditor's risk assessment of a material misstatement of the financial
statements due to fraud. Which of the following should be included in
workpaper documentation if risk factors are identified as being present?
A. A copy of the report of the risk factor to the company's legal counsel.
B. Discussion of the risk factor with the client.
C. Investigation of the risk factor.
D. Those risk factors identified. Correct Ans - Choice "D" is correct.
During planning, the auditor is required to document the assessment of
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