← Back to exam page

AUD – CPA Auditing and Attestation Exam

Loading demo links...

Showing 7–9 of 20 questions

Question 7 (Volume D)

At the conclusion of an audit, an auditor is reviewing the evidence gathered in support of the financial statements. With regard to the valuation of inventory, the auditor concludes that the evidence obtained is not sufficient to support management's representations. Which of the following actions is the auditor most likely to take?

Select an option, then click Submit answer.

  • ○

    Consult with the audit committee and issue a disclaimer of opinion.
  • ○

    Consult with the audit committee and issue a qualified opinion.
  • ○

    Obtain additional evidence regarding the valuation of inventory.
  • ○

    Obtain a statement from management supporting their inventory valuation.
Question 8 (Volume D)

An auditor scans a client's investment records for the period just before and just after the year-end to determine that any transfers between categories of investments have been properly recorded. The primary purpose of this procedure is to obtain evidence about management's financial statement assertions of:

Select an option, then click Submit answer.

  • ○

    Rights and obligations, and existence.
  • ○

    Valuation and accuracy, and rights and obligations.
  • ○

    Existence, and understandability and classification.
  • ○

    Understandability and classification, and valuation and accuracy.
Question 9 (Volume C)

Under properly designed internal control, the same employee most likely would match vendors' invoices with receiving reports and also:

Select an option, then click Submit answer.

  • ○

    Post the detailed accounts payable records.
  • ○

    Recompute the calculations on vendors' invoices.
  • ○

    Reconcile the accounts payable ledger.
  • ○

    Cancel vendors' invoices after payment.