Question No 1

For an entity's financial statements to be presented fairly in conformity with generally accepted accounting principles, the principles selected should:

Choose the Choices:

Be applied on a basis consistent with those followed in the prior year.

Be approved by the Auditing Standards Board or the appropriate industry subcommittee.

Reflect transactions in a manner that presents the financial statements within a range of acceptable limits.

Match the principles used by most other entities within the entity's particular industry.

Question No 2

Which of the following statements is correct concerning an auditor's responsibilities regarding financial statements?

Choose the Choices:

An auditor may not draft an entity's financial statements based on information from management's accounting system.

The adoption of sound accounting policies is an implicit part of an auditor's responsibilities.

An auditor's responsibilities for audited financial statements are confined to the expression of the auditor's opinion.

Making suggestions that are adopted about an entity's internal control environment impairs an auditor's independence.

Question No 3

Which of the following provides the most authoritative guidance for an auditor?

Choose the Choices:

An AICPA audit and accounting guide that provides specific guidance with respect to the accounting practices in the client's industry.

A Journal of Accountancy article discussing implementation of a new standard.

General guidance provided by a Statement on Auditing Standards.

Specific guidance provided by an interpretation of a Statement on Auditing Standards.

Question No 4

Which of the following accurately depicts the auditor's responsibility with respect to Statements on Auditing Standards?

Choose the Choices:

The auditor is required to follow the guidance provided by the Standards, without exception.

The auditor is generally required to follow the guidance provided by Standards with which he or she is familiar, but will not be held responsible for departing from provisions of which he or she was unaware.

The auditor is generally required to follow the guidance provided by the Standards, unless following such guidance would result in an audit that is not cost - effective.

The auditor is generally required to follow the guidance provided by the Standards, and should be able to justify any departures.

Question No 5

In the first audit of a new client, an auditor was able to extend auditing procedures to gather sufficient evidence about consistency. Under these circumstances, the auditor should:

Practice AICPA CPA-Auditing Exam Questions

Question No 1

Question No 2

Question No 3

Question No 4

Question No 5

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