CPA Auditing and Attestation

CPA Auditing and Attestation practice questions, page 3 of 41, with answer review and explanations.

Question 11

Which of the following is not an example of the application of professional skepticism?

  1. Designing additional auditing procedures to obtain more reliable evidence in support of a particular financial statement assertion.
  2. Obtaining corroboration of management's Explanations through consultation with a specialist.
  3. Inquiring of prior year engagement personnel regarding their assessment of management's honesty and integrity.
  4. Using third party confirmations to provide support for management's representations.

Question 12

Which of the following categories is included in generally accepted auditing standards?

  1. Standards of review.
  2. Standards of planning.
  3. Standards of fieldwork.
  4. Standards of evidence.

Question 13

When qualifying an opinion because of an insufficiency of audit evidence, an auditor should refer to the situation in the:

  1. Option A
  2. Option B
  3. Option C
  4. Option D

Question 14

When an auditor believes there is substantial doubt about the ability of an entity to continue as a going concern, all of the following should be included in the audit documentation, except:

  1. The conditions that gave rise to the substantial doubt.
  2. The auditor's conclusion about whether substantial doubt remains or is alleviated.
  3. Management's conclusion regarding whether substantial doubt remains or is alleviated.
  4. The effect of the auditor's conclusion on the auditor's report.

Question 15

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:

  1. Increase current dividend distributions.
  2. Reduce existing lines of credit.
  3. Increase ownership equity.
  4. Purchase assets formerly leased. C