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Free AUD – CPA Auditing and Attestation Exam Practice Test Question

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Showing 10–12 of 20 questions

Question 10 (Volume B)

When an accountant performs more than one level of service (for example, a compilation and a review, or a compilation and an audit) concerning the financial statements of a nonissuer, the accountant generally should issue the report that is appropriate for:

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    The lowest level of service rendered.
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    The highest level of service rendered.
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    A compilation engagement.
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    A review engagement.
Question 11 (Volume B)

In performing an attest engagement, a CPA typically:

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    Supplies litigation support services.
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    Assesses control risk at a low level.
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    Issues a report on subject matter (or on an assertion about subject matter) that is the responsibility of another party.
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    Provides management consulting advice.
Question 12 (Volume E)

As a result of tests of controls, an auditor assesses control risk too high. This incorrect assessment most likely occurred because:

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    Control risk based on the auditor's sample is less than the true operating effectiveness of the client's control activity.
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    The auditor believes that the control activity relates to the client's assertions when, in fact, it does not.
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    The auditor believes that the control activity will reduce the extent of substantive testing when, in fact, it will not.
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    Control risk based on the auditor's sample is greater than the true operating effectiveness of the client's control activity.