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AUD – CPA Auditing and Attestation Exam

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Showing 16–18 of 20 questions

Question 16 (Volume C)

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding:

Select an option, then click Submit answer.

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    Disagreements the predecessor had with the client concerning auditing procedures and accounting principles.
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    The predecessor's evaluation of matters of continuing accounting significance.
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    The degree of cooperation the predecessor received concerning the inquiry of the client's lawyer.
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    The predecessor's assessments of inherent risk and judgments about materiality.
Question 17 (Volume B)

The objective of a review of interim financial information of a public entity is to provide an accountant with a basis for reporting whether:

Select an option, then click Submit answer.

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    A reasonable basis exists for expressing an updated opinion regarding the financial statements that were previously audited.
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    Material modifications should be made to conform with generally accepted accounting principles.
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    The financial statements are presented fairly in accordance with standards of interim reporting.
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    The financial statements are presented fairly in accordance with generally accepted accounting principles.
Question 18 (Volume A)

This question presents independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue. Select as the best answer for this item, the action the auditor normally would take. The types of opinions in List A may be selected once, more than once, or not at all.

Assume:

• The auditor is independent.

• The auditor previously expressed an unqualified opinion on the prior year's financial statements.

• Only single-year (not comparative) statements are presented for the current year.

• The conditions for an unqualified opinion exist unless contradicted in the factual situations.

• The conditions stated in the factual situations are material.

• No report modifications are to be made except in response to the factual situation.

Item to Be Answered

Due to recurring operating losses and working capital deficiencies, an auditor has substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time.

However, the financial statement disclosures concerning these matters are adequate.

List A

Types of Options

Select an option, then click Submit answer.

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    An "except for" qualified opinion.
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    An unqualified opinion.
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    An adverse opinion.
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    A disclaimer of opinion.
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    Either an "except for" qualified opinion or an adverse opinion.
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    Either a disclaimer of opinion or an "except for" qualified opinion.
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    Either an adverse opinion or a disclaimer of opinion.