Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US

AICPA CPA Auditing and Attestation Exam

Certification Provider: AICPA
Exam Name: CPA Auditing and Attestation
Duration: 120 Minutes
Number of questions in our database: 1025
Exam Version: May. 07, 2022
Exam Official Topics:
  • Topic 1: Auditing and Attestation (AUD)
  • Topic 2: Business Environment and Concepts (BEC)
  • Topic 3: Financial Accounting and Reporting (FAR)

Free AICPA CPA Auditing and Attestation Exam Actual Questions

The questions for CPA Auditing and Attestation were last updated On May. 07, 2022

Question #1

The auditor's report on internal controls and compliance with laws and regulations in accordance with Government Auditing Standards (the Yellow Book), is required to include:

i. The scope of the auditor's testing of internal controls.

ii. Uncorrected misstatements that were determined by management to be immaterial.

Reveal Solution Hide Solution
Correct Answer: A

Choice 'a' is correct. The scope of the auditor's testing of internal controls is required to be included in the auditor's report on internal controls and compliance with laws and regulations in accordance with Government Auditing Standards (the Yellow Book).

Choices 'b' and 'c' are incorrect. Immaterial uncorrected misstatements are not included in the auditor's report on internal controls and compliance with laws and regulations.

Choice 'd' is incorrect. The scope of the auditor's testing of internal controls is required to be included in the auditor's report on internal controls and compliance with laws and regulations in accordance with Government Auditing Standards (the Yellow Book).


Question #2

In performing an audit in accordance with Generally Accepted Government Auditing Standards (the "Yellow Book"), the auditor:

Reveal Solution Hide Solution
Correct Answer: C

Choice 'c' is correct. An auditor's reporting requirements under Generally Accepted Government Auditing Standards (GAGAS or the Yellow Book) are expanded to include reports on the audited entity's compliance with laws, rules, and regulations that have a material impact on the financial statements and on internal controls over financial reporting.

Rule: Reporting responsibilities under GAGAS are expanded to include:

1. Reports on compliance with laws, rules, and regulations, violations of which may affect financial statement amounts, and

2. Reports on internal control over financial reporting.

Choice 'a' is incorrect. Specific reporting requirements and other expanded audit standards associated with Yellow Book audits do not reduce professional judgment.

Choice 'b' is incorrect. Federal Inspectors General do not split their responsibilities with independent public accountants performing Yellow Book Audits.

Choice 'd' is incorrect. Although Yellow Book requirements represent logical extensions of generally accepted auditing standards, the specific responsibilities undertaken in an audit that requires application of the Yellow Book would not surface as a result of an audit under generally accepted auditing standards.


Question #3

Government Auditing Standards published by the Government Accountability Office:

Reveal Solution Hide Solution
Correct Answer: C

Choice 'c' is correct. Generally Accepted Government Auditing Standards primarily apply to audits of federal financial assistance but have been adopted by some states for audits of state financial assistance.

Choice 'a' is incorrect. Government Auditing Standards will apply to federal financial assistance received by governments, not-for-profit organizations, or other organizations. GAGAS may also extend to other financial assistance depending on whether those standards have been adopted by the state providing the assistance.

Choice 'b' is incorrect. Government Auditing Standards will apply to federal financial assistance received by governments, not-for-profit organizations, or other organizations, not only to governments.

Choice 'd' is incorrect. Government Auditing Standards will apply to federal financial assistance received by governments, not-for-profit organizations, or other organizations, not only to governments.


Question #4

Gearty & Duffy, certified public accountants, have been engaged to perform a single audit of Sleepy Knoll Township, a local government receiving substantial federal financial assistance for community development and housing assistance. A single audit represents:

Reveal Solution Hide Solution
Correct Answer: C

Choice 'c' is correct. A single audit represents a combined audit of both an entity's financial statements and federal financial assistance programs. The single audit provides audited organizations with the opportunity to capitalize on the efficiency of satisfying their audit requirements with a single audit.

Auditors are governed by the Single Audit Act and OMB Circular A-133.

Choice 'a' is incorrect. A single audit is not simply an audit of federal financial assistance.

Choice 'b' is incorrect. A single audit is not simply an audit of federal financial assistance.

Choice 'd' is incorrect. A single audit is not limited to expression of an opinion on the fair presentation of financial statements. It also is designed to report on compliance with laws, rules, and regulations.


Question #5

An audit performed in accordance with OMB Circular A-133 will expand the auditor's responsibilities beyond generally accepted auditing standards. The auditor's expanded responsibilities include:

Reveal Solution Hide Solution
Correct Answer: C

Choice 'c' is correct. OMB Circular A-133 expands the auditor's responsibilities to include procedures designed to test and report on compliance matters having a direct and material effect on major federal award programs.

Choice 'a' is incorrect. OMB Circular A-133 expands procedures to major programs as defined by the Circular, not to all programs.

Choice 'b' is incorrect. OMB Circular A-133 audit objectives relate to management's assertions regarding compliance with laws, rules, and regulations, not to noncompliance issues identified by the Office of the Inspector General.

Choice 'd' is incorrect. OMB Circular A-133 relates to the financial and compliance audits of major federal financial assistance programs, not to the achievement of program objectives.



Unlock all CPA Auditing and Attestation Exam Questions with Advanced Practice Test Features:
  • Select Question Types you want
  • Set your Desired Pass Percentage
  • Allocate Time (Hours : Minutes)
  • Create Multiple Practice tests with Limited Questions
  • Customer Support
Get Full Access Now
Disscuss AICPA CPA Auditing and Attestation Topics, Questions or Ask Anything Related

Save Cancel