CPA Test Exam - Free Actual Q&As, Page 1

Test Prep CPA Test Actual Exam Questions

Last updated on June 23, 2025.

Topic 1 - Topic 1, Auditing and Attestation

Question #1 Topic 1

Several sources of GAAP consulted by an auditor are in conflict as to the application of an accounting principle. Which of the following should the auditor consider the most authoritative?

A. FASB Technical Bulletins.
B. AICPA Accounting Interpretations.
C. FASB Statements of Financial Accounting Concepts.
D. AICPA Technical Practice Aids.

Reveal Solution Discussion

Correct Answer: A 🗳️

Question #2 Topic 1

For an entity's financial statements to be presented fairly in conformity with generally accepted accounting principles, the principles selected should:

A. Be applied on a basis consistent with those followed in the prior year.
B. Be approved by the Auditing Standards Board or the appropriate industry subcommittee.
C. Reflect transactions in a manner that presents the financial statements within a range of acceptable limits.
D. Match the principles used by most other entities within the entity's particular industry.

Reveal Solution Discussion

Correct Answer: C 🗳️

Question #3 Topic 1

Which of the following statements is correct concerning an auditor's responsibilities regarding financial statements?

A. An auditor may not draft an entity's financial statements based on information from management's accounting system.
B. The adoption of sound accounting policies is an implicit part of an auditor's responsibilities.
C. An auditor's responsibilities for audited financial statements are confined to the expression of the auditor's opinion.
D. Making suggestions that are adopted about an entity's internal control environment impairs an auditor's independence.

Reveal Solution Discussion

Correct Answer: C 🗳️

Question #4 Topic 1

Which of the following provides the most authoritative guidance for an auditor?

A. An AICPA audit and accounting guide that provides specific guidance with respect to the accounting practices in the client's industry.
B. A Journal of Accountancy article discussing implementation of a new standard.
C. General guidance provided by a Statement on Auditing Standards.
D. Specific guidance provided by an interpretation of a Statement on Auditing Standards.

Reveal Solution Discussion

Correct Answer: C 🗳️

Question #5 Topic 1

Which of the following accurately depicts the auditor's responsibility with respect to Statements on Auditing Standards?

A. The auditor is required to follow the guidance provided by the Standards, without exception.
B. The auditor is generally required to follow the guidance provided by Standards with which he or she is familiar, but will not be held responsible for departing from provisions of which he or she was unaware.
C. The auditor is generally required to follow the guidance provided by the Standards, unless following such guidance would result in an audit that is not cost-effective.
D. The auditor is generally required to follow the guidance provided by the Standards, and should be able to justify any departures.

Reveal Solution Discussion

Correct Answer: D 🗳️

Question #6 Topic 1

In the first audit of a new client, an auditor was able to extend auditing procedures to gather sufficient evidence about consistency. Under these circumstances, the auditor should:

A. Not report on the client's income statement.
B. Not refer to consistency in the auditor's report.
C. State that the consistency standard does not apply.
D. State that the accounting principles have been applied consistently.

Reveal Solution Discussion

Correct Answer: B 🗳️

Question #7 Topic 1

The third general standard states that due care is to be exercised in the performance of an audit. This standard is ordinarily interpreted to require:

A. Thorough review of the existing safeguards over access to assets and records.
B. Limited review of the indications of employee fraud and illegal acts.
C. Objective review of the adequacy of the technical training and proficiency of firm personnel.
D. Critical review of the judgment exercised at every level of supervision.

Reveal Solution Discussion

Correct Answer: D 🗳️

Question #8 Topic 1

The concept of materiality would be least important to an auditor when considering the:

A. Adequacy of disclosure of a client's illegal act.
B. Discovery of weaknesses in a client's internal control.
C. Effects of a direct financial interest in the client on the CPA's independence.
D. Decision whether to use positive or negative confirmations of accounts receivable.

Reveal Solution Discussion

Correct Answer: C 🗳️

Question #9 Topic 1

An auditor of a nonpublic company must conduct the audit in accordance with:
1: ASB standards.
2: PCAOB standards.

A. 1.
B. Both 1 and 2.
C. Either 1 or 2, but not both.
D. 2.

Reveal Solution Discussion

Correct Answer: A 🗳️

Question #10 Topic 1

Because of the risk of material misstatement, an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of:

A. Objective judgment.
B. Independent integrity.
C. Professional skepticism.
D. Impartial conservatism.

Reveal Solution Discussion

Correct Answer: C 🗳️

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