The audit client believes that this event could have a significant direct effect on the financial statements. A customer that provides 9% of revenues for an audit client experiences a flood in their head offices prior to completion of year-end fieldwork. Rule 102 Integrity and Objectivity states all three requirements.Ĩ. Not knowingly misrepresent facts or subordinate judgment
Audit cpa study guide pdf professional#
In performance of any professional service, a member shallĬ. In addition the client must establish and maintain internal controls.ħ. The client must oversee, evaluate and accept responsibility for results. Must be responsible for establishing internal controls. Designate an individual in senior management with requisite skills and knowledge to oversee these services.Ĭ. Assume all responsibilities of decision making.ī. When nonattest service are provided, the client must:Ī. Someone in a key position exerts significant influence over the contents of the client’s financial statements. CPA’s father works as the CFO for the client.Īccording to the exception to Rule 101, a spouse may be employed by a client if s/he was not employed in a key position. CPA’s brother works as a stock promoter for the client.ĭ.
CPA’s nondependent son has a material financial interest in the client that the CPA is not aware of.Ĭ. CPA’s wife works as an executive assistant for the client.ī. According to AICPA standards, which of the following situations will not compromise the independence of the CPA performing an audit?Ī. Refinancning an automobile loan from a bank client.Īccording to Rule 101, a partner or professional cannot own more than 5% of the client’s outstanding shares.ĥ. Owning 9% of a client’s outstanding shares.ĭ. Receving a private loan from a hedge fund manager who owns 9% of the outstanding shares of the client company.Ĭ. Acting as an executor of an estate that had an immaterial indirect financial interest in the client.ī. According to AICPA standards, which of the following situations will compromise the independence of the CPA performing an audit?Ī. Preparation of fraudulent tax return for a client.Ĥ. Accidentally failing to file a personal tax return.ĭ. Preparation of a fraudulent tax return.Ĭ. Which type of conduct would not result in an automatic expulsion from AICPA?Ī. This answer is correct because a dependent child is considered to be immediate family of the covered member.ģ. Which of the following is not a close relative of the covered member?
Retaining client records after an engagement is terminated prior to completion and the client has demanded their return.Īccording to Interpretation 501-1 “If an engagement is terminated prior to completion, the member is required to return only client records.”Ģ. Witholding an incomplete audit report requested by client.ĭ. Witholding an audit report due to outstanding audit issues and the client has demanded their return.Ĭ. Witholding an audit report because fees charged to client are past due and the client has demanded their return.ī. Which of the following acts is generally prohibited by the professional standards?Ī. Like our AUD study guide, we only focus on the topics that you are most likely to be tested on.īelow are some sample CPA Audit Exam Questions that you can find in our Auditing practice exam test bank. Here are 12 different CPA Audit Exam Questions with detailed answers.
0 kommentar(er)
