A1-A4 - 30 MCQs

Question 1

An unjustified accounting change may cause the auditor to:

Answer 1

Issue a qualified or adverse opinion.

Question 2

An accountant compiles the financial statements of a nonissuer and issues the standard compilation report. It is implied that:

Answer 2

Substantially all disclosures required by GAAP are included in the financial statements

Question 3

A practitioner’s agreed-upon procedures that is i the form of procedures and findings should contain:

Answer 3

A statement of restrictions on the use of the report.

Question 4

An internal auditor’s work would most likely affect the nature, extent, and timing of an independent CPA’s auditing procedures when the internal auditor’s work relates to assertions about the:

Answer 4

Existence of fixed asset additions.

Question 5

An auditor usually tests reasonableness of dividend income from investments in publicly-held companies by computing the amounts that should have been received by referring to:

Answer 5

Dividend record books produced by investment advisory services.