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AICPA CPA-Auditing Exam Questions
- Topic 1: Auditing and Attestation (AUD)
- Topic 2: Business Environment and Concepts (BEC)
- Topic 3: Financial Accounting and Reporting (FAR)
Free AICPA CPA-Auditing Exam Actual Questions
Note: Premium Questions for CPA-Auditing were last updated On Jul. 03, 2025 (see below)
In testing for unrecorded retirements of equipment, an auditor most likely would:
Choice 'a' is correct. Tracing (old) equipment recorded in the books to the actual equipment during a plant tour is a control which tests for unrecorded retirements.
Choice 'b' is incorrect. Determining which assets are fully depreciated does not tell you which ones are retired, as fully depreciated assets may continue to be used.
Choice 'c' is incorrect. Selecting items from the plant tour and then tracing them to the equipment subsidiary ledger will provide evidence that all equipment is recorded. It will not detect whether recorded equipment has been retired. (This step is backwards.)
Choice 'd' is incorrect. Scanning the general journal for unusual equipment additions and excessive debits to repairs and maintenance expense provides evidence regarding fixed asset additions, not retirements.
Which of the following risks may be assessed in nonquantitative terms?
Which of the following factors would least likely affect the nature and extent of audit documentation?
Choice 'd' is correct. The content of the representation letter will generally not affect the nature and extent of audit documentation. Factors affecting the nature and extent of audit documentation include:
1. The risk of material misstatement;
2. The extent to which judgment was required in performing the work and evaluating the results;
3. The nature of the specific auditing procedure;
4. The significance of the evidence obtained;
5. The nature and extent of any problems identified; and
6. The need to document conclusions that may not be obvious.
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?
Choice 'c' is correct. If an auditor has doubts about a material assertion (such as the valuation of inventory), he/she should gather sufficient evidence to eliminate the doubt.
Choices 'a' and 'b' are incorrect. The auditor would not consult with the audit committee regarding the sufficiency of audit evidence obtained, as this is determined based on the auditor's own judgment. In addition, if the auditor is able to obtain additional evidence, it might be possible to issue an unqualified opinion. Finally, even if no additional evidence is available, the auditor will still need to decide whether a qualified opinion or a disclaimer of opinion is more appropriate, depending on materiality.
Choice 'd' is incorrect. Since management representations are in fact 'statements from management,' obtaining additional statements from management would not provide additional support.
Which of the following factors is (are) considered in determining the sample size for a test of controls?
Choice 'a' is correct. To determine the number of items to be selected for a particular sample for a test of controls, the auditor should consider the tolerable rate of deviation from the controls being tested, the likely rate of deviations (expected deviation rate), and the allowable risk of assessing control risk too low.
Choices 'b', 'c', and 'd' are incorrect, per the above Explanation: .
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