AICPA CPA-Auditing CPA Exam Practice Test Instant Access

Question 1

An auditor who is testing IT controls in a payroll system would most likely use test data that contain conditions such as:

ADeductions not authorized by employees.

BOvertime not approved by supervisors.

CTime tickets with invalid job numbers.

DPayroll checks with unauthorized signatures.

Answer : C

Question 2

With respect to the audit of a nonissuer, significant deficiencies are matters that come to an auditor's attention, which should be communicated to an entity's management and those charged with governance because they represent:

AMaterial irregularities or illegal acts perpetrated by high-level management.

BDeficiencies in the design or operation of internal control that could reasonably be expected to cause a non-inconsequential misstatement in the financial statements.

CFlagrant violations of the entity's documented conflict-of-interest policies.

DIntentional attempts by client personnel to limit the scope of the auditor's fieldwork.

Answer : B

Question 3

The two requirements crucial to achieving audit efficiency and effectiveness with a microcomputer are selecting:

AThe appropriate audit tasks for microcomputer applications and the appropriate software to perform the selected audit tasks.

BThe appropriate software to perform the selected audit tasks and client data that can be accessed by the auditor's microcomputer.

CClient data that can be accessed by the auditor's microcomputer and audit procedures that are generally applicable to several clients in a specific industry.

DAudit procedures that are generally applicable to several clients in a specific industry and the appropriate audit tasks for microcomputer applications.

Answer : A

Question 4

Which of the following characteristics distinguishes computer processing from manual processing?

AComputer processing virtually eliminates the occurrence of computational error normally associated with manual processing.

BErrors or irregularities in computer processing will be detected soon after their occurrences.

CThe potential for systematic error is ordinarily greater in manual processing than in computerized processing.

DMost computer systems are designed so that transaction trails useful for audit purposes do not exist.

Answer : A

Question 5

With respect to the audit of a nonissuer, significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's management and those charged with governance because they represent:

AManipulation or falsification of accounting records or documents from which financial statements are prepared.

BDisclosures of information that significantly contradict the auditor's going concern assumption.

CMaterial irregularities or illegal acts perpetrated by high-level management.

DDeficiencies in the design or operation of internal control that could reasonably be expected to cause a non-inconsequential misstatement in the financial statements.

Answer : D

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AICPA CPA Auditing and Attestation CPA Auditing and Attestation CPA Exam Practice Test

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