AICPA CPA Auditing
Q: 1
Equipment acquisitions that are misclassified as maintenance expense most likely would be detected
by an internal control activity that provides for:
Options
Q: 2
Which of the following would an auditor most likely use in determining the auditor's preliminary
judgment about materiality?
Options
Q: 3
Digit Co. uses the FIFO method of costing for its international subsidiary's inventory and LIFO for its
domestic inventory. Under these circumstances, the auditor's report on Digit's financial statements
should express an:
Options
Q: 4
When qualifying an opinion because of an insufficiency of audit evidence, an auditor should refer to
the situation in the:
Options
Q: 5
Which of the following procedures should an auditor generally perform regarding subsequent
events?
Options
Q: 6
After considering an entity's negative trends and financial difficulties, an auditor has substantial
doubt about the entity's ability to continue as a going concern. The auditor's considerations relating
to management's plans for dealing with the adverse effects of these conditions most likely would
include management's plans to:
Options
Q: 7
Blue, CPA, has been asked to render an opinion on the application of accounting principles to a specific transaction by an entity that is audited by another CPA. Blue may accept this engagement, but should:
Options
Q: 8
March, CPA, is engaged by Monday Corp., a client, to audit the financial statements of Wall Corp., a
company that is not March's client. Monday expects to present Wall's audited financial statements
with March's auditor's report to 1st Federal Bank to obtain financing in Monday's attempt to
purchase Wall. In these circumstances, March's auditor's report would usually be addressed to:
Options
Q: 9
Before accepting an audit engagement, a successor auditor should make specific inquiries of the
predecessor auditor regarding the predecessor's:
Options
Q: 10
When there has been a change in accounting principles, but the effect of the change on the
comparability of the financial statements is not material, the auditor should:
Options
Question 1 of 10
