AICPA Released Questions from the

2015 Uniform CPA Exam

- Released April 2016 -

AUDITING & ATTESTATION

Uniform CPA Examination Questions and unofficial Answers, copyright by American Institute of Certified Public
Accountants, Inc. All rights reserved. Reprinted by Roger CPA Review with permission.
 2016 AICPA Released Auditing & Attestation Questions

Please note: This document contains all the question information released by the AICPA. The table below each question contains
placement data for the question within the exam template from which the question comes. The Key value is the correct letter
answer for each preceding question. For best study results, the Roger CPA Review team adds comprehensive solution rationales
when integrating new questions into your course materials.

MULTIPLE CHOICE DIFFICULT

An accountant's compilation report on a financial projection that does not contain a range should include
a statement that
A. There will usually be differences between the projected and actual results because events and
circumstances frequently do not occur as expected.
B. The compilation includes an evaluation of the support for the assumptions underlying the
projection.
C. The accountant's responsibility to update the report for future events and circumstances is limited
to one year.
D. The projection is limited to presenting, in the form of financial statements, information that is the
accountant's representation.

Attribute Value
Item ID 10487
Area 5
Group 3
Topic 1
Key A

The standard report issued by a CPA after reviewing the financial statements of a nonissuer in
accordance with Statements on Standards for Accounting and Review Services (SSARS) should state
that the CPA
A. Assessed the accounting principles used and significant estimates made by management.
B. Has no responsibility to update the CPA's report for events and circumstances occurring after the
report's date.
C. Is not aware of any material modifications that should be made to the financial statements.
D. Believes that there will usually be differences between the projected and actual results.

Attribute Value
Item ID 10669
Area 5
Group 3
Topic 2
Key C
 2016 AICPA Released Questions AUD

A practitioner reporting on pro forma financial information does not possess an understanding of the
client's business and the industry in which the client operates. The practitioner should take which of the
following actions?
A. Issue a disclaimer, because the scope of work was not sufficient to express an opinion.
B. Review industry trade journals.
C. Refer a substantial portion of the audit to another CPA who will act as the principal practitioner.
D. Perform ratio analysis of the financial data of comparable prior periods.

Attribute Value
Item ID 11035
Area 2
Group 5
Topic 0
Key B

A company engages a practitioner to assist the audit committee by performing specific procedures that
were agreed to by the audit committee. Which of the following statements is correct regarding the
procedures to be performed?
A. The procedures should be designed to allow the practitioner to provide negative assurance.
B. The practitioner should not involve the audit committee in determining what procedures are to be
performed.
C. The practitioner has responsibility for the adequacy of the procedures to be performed.
D. The specific procedures performed should be listed in the practitioner's report to the audit
committee.

Attribute Value
Item ID 11335
Area 4
Group 10
Topic 6
Key D

Which of the following procedures would an auditor most likely perform to identify unusual sales
transactions?
A. Tracing credits in the accounts receivable ledger to source documentation.
B. Performing a trend analysis of quarterly sales.
C. Examining duplicate sales invoices for credit approval by the credit manager.
D. Tracing cash receipt entries to the bank statement deposit for amount and date.

Attribute Value
Item ID 11407
Area 3
Group 2
Topic 7
Key B

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 2016 AICPA Released Questions AUD

Which of the following standards should a CPA firm apply in a review of pro forma financial information?
A. Statements on Standards for Attestation Engagements.
B. Statements on Standards for Consulting Services.
C. Statements on Standards for Accounting and Review Services.
D. Generally accepted auditing standards.

Attribute Value
Item ID 11669
Area 1
Group 1
Topic 0
Key A

Which of the following tasks can be achieved using generalized audit software?
A. Determining acceptable risk levels for substantive testing of account balances.
B. Filtering data based on accounts receivable data recording.
C. Detecting transactions that may be suspicious due to alteration of data input.
D. Assessing likelihood of fraud based on input of fraud risk factors.

Attribute Value
Item ID 11779
Area 3
Group 2
Topic 10
Key B

A company hired a practitioner to perform an examination of prospective financial statements. The

practitioner concluded that the assumptions did not provide a reasonable basis for the prospective
financial statements. Which of the following types of opinion should the practitioner issue?
A. Unqualified.
B. Qualified.
C. Adverse.
D. Disclaimer.

Attribute Value
Item ID 12427
Area 4
Group 10
Topic 7
Key C

5
 2016 AICPA Released Questions AUD

Which of the following types of control best describes procedures to ensure appropriate systems software
acquisition?
A. Application.
B. Physical.
C. General.
D. Monitoring.

Attribute Value
Item ID 12821
Area 2
Group 6
Topic 5
Key C

Considering only the provisions of the AICPA Code of Professional Conduct, which of the following
services may a CPA perform for a commission or contingent fee?
A. Preparation of an original income tax return.
B. Representation of a nonattest client in an IRS examination.
C. Preparation of an amended income tax return to claim a deduction that was inadvertently omitted
on an originally filed return.
D. Performance of consulting services for an audit client.

Attribute Value
Item ID 15635
Area 6
Group 1
Topic 1
Key B

How should differences of opinion between the engagement partner and the quality control reviewer be
resolved?
A. By adhering to industry best practices.
B. By following the firm's policies and procedures.
C. By accepting the recommendations of the client's audit committee.
D. By issuing a disclaimer of opinion and reporting the issue to those charged with the entity's
governance.

Attribute Value
Item ID 16733
Area 1
Group 2
Topic 0
Key B

6
 2016 AICPA Released Questions AUD

Based on new information gained during an audit of a nonissuer, an auditor determines that it is
necessary to modify materiality for the financial statements as a whole. In this circumstance, which of the
following statements is accurate?
A. The auditor is required to reperform audit procedures already completed on the audit using the
revised materiality.
B. The auditor should consider disclaiming an opinion due to a scope limitation.
C. The revision of materiality at the financial statement levels will not affect the planned nature and
timing of audit procedures, only the extent of those procedures.
D. Materiality levels for particular classes of transactions, account balances, or disclosures might
also need to be revised.

Attribute Value
Item ID 16847
Area 2
Group 1
Topic 0
Key D

In an audit of a nonissuer's financial statements, projected misstatement is

A. The likely amount of misstatement in the subsequent-period's financial statements if a control is
not properly implemented.
B. An auditor's best estimate of misstatements in a population extrapolated from misstatements
identified in an audit sample.
C. The only amount that the auditor considers in evaluating materiality and fairness of the financial
statements.
D. An auditor's best estimate, before performing audit procedures, of misstatements that the auditor
expects to find during the audit.

Attribute Value
Item ID 16923
Area 4
Group 5
Topic 0
Key B

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 2016 AICPA Released Questions AUD

According to the U.S. Department of Labor, an auditor of an employee benefit plan would be considered
independent if
A. The auditor is committed to acquire a material indirect financial interest in the plan sponsor.
B. An actuary associated with the auditor's firm renders services to the plan.
C. A member of the auditor's firm is an investment advisor to the plan.
D. The auditor's firm maintains financial records for the plan.

Attribute Value
Item ID 17377
Area 6
Group 1
Topic 4
Key B

Which of the following audit procedures would be most appropriate to test the valuation of the collateral of
a delinquent loan receivable?
A. Sending a positive confirmation letter to the debtor to confirm the loan balance.
B. Performing a site visit to physically inspect the collateral.
C. Reviewing the debtor's purchase records to test the historical value of the collateral.
D. Obtaining a current value appraisal of the collateral.

Attribute Value
Item ID 20131
Area 3
Group 2
Topic 12
Key D

An accountant performing a nonissuer's review engagement is considering the appropriateness of a

client's balance for accrued wages. The accountant should perform each of the following procedures,
except
A. Testing the process used by management to determine the balance.
B. Comparing the current-year balance to the prior-year balance.
C. Obtaining representations from management regarding the year-end balance.
D. Making inquiries of the payroll accountant regarding completeness of the account balance.

Attribute Value
Item ID 20671
Area 5
Group 1
Topic 1
Key A

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 2016 AICPA Released Questions AUD

To what degree, if at all, is a significant deficiency related to a material weakness?

A. It is less severe than a material weakness.
B. It is more severe than a material weakness.
C. It is unrelated to a material weakness.
D. It is equivalent to a material weakness.

Attribute Value
Item ID 20789
Area 3
Group 2
Topic 19
Key A

In an integrated audit of a nonissuer, which of the following is the responsibility of an auditor with regard
to testing controls at a company with multiple business units?
A. Testing controls over only certain specific risks at all business units of the company.
B. Testing controls over all risks at all business units of the company.
C. Testing controls over all risks at business units that are material to the company's consolidated
financial statements.
D. Testing controls over specific risks at business units that are material to the company's
consolidated financial statements.

Attribute Value
Item ID 21441
Area 3
Group 2
Topic 1
Key D

If an auditor performing an integrated examination identifies one or more material weaknesses in a

nonissuer's internal control, the auditor should
A. Expand the examination of internal control to identify deficiencies less severe than material
weaknesses.
B. Conclude that the financial statements are materially misstated because of the material weakness
in internal control.
C. Disclaim an opinion on internal control.
D. Express an adverse opinion on the entity's internal control.

Attribute Value
Item ID 21913
Area 4
Group 10
Topic 4
Key D

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 2016 AICPA Released Questions AUD

A registered public accounting firm is conducting an audit of an issuer and initiated its current-year audit
on January 1, year 3. Many of the firm's former auditors are now employed by the client. Under which of
the following circumstances may the firm perform the audit?
A. The client's CFO was the lead partner on the audit until December 31, year 1.
B. The client's CEO was a manager on the audit until June 30, year 2.
C. The client's controller was a staff accountant on the audit for two weeks during year 2.
D. The client's chief accounting officer was the concurring partner on the audit until April 15, year 2.

Attribute Value
Item ID 22137
Area 6
Group 1
Topic 2
Key A

The auditor is required to communicate each of the following items to those charged with governance,
except
A. An overview of the planned scope and timing of the audit.
B. The auditor's responsibilities to complete the audit in accordance with generally accepted auditing
standards.
C. All control deficiencies detected during the course of the audit.
D. Any significant findings from the audit.

Attribute Value
Item ID 22649
Area 4
Group 10
Topic 12
Key C

Which of the following statements best describes the IFAC Code of Ethics for Professional Accountants?
A. A conceptual framework that establishes the appropriate actions for all possible threats to
compliance with established principles.
B. A conceptual framework that applies only to professional accountants in public practice.
C. A conceptual framework that requires a professional accountant to identify, evaluate, and address
threats to compliance with established principles.
D. A conceptual framework that identifies voluntary compliance measures with established ethical
principles.

Attribute Value
Item ID 22855
Area 6
Group 1
Topic 5
Key C

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 2016 AICPA Released Questions AUD

An accountant performed a review engagement of the financial statements of a nonissuer oil and gas
refinery. Which of the following would be included in the accountant's documentation?
A. The internal auditor's inspection reports of the level of oil reserves.
B. The response of the client's legal counsel to pending worker's compensation claims.
C. A memo on a discussion with the CFO regarding a suspected kiting scheme.
D. An evaluation of the refinery's controls over oil pressure levels.

Attribute Value
Item ID 23095
Area 5
Group 2
Topic 7
Key C

Which of the following most accurately describes the process of a walkthrough?

A. Testing and documenting the results of tests of selected controls.
B. Inspection of selected documents, records, and internal control documentation.
C. Observation of an entity's activities and operations.
D. Following a transaction from its origination until it is reflected in the financial statements.

Attribute Value
Item ID 23335
Area 2
Group 6
Topic 4
Key D

Which of the following matters in a financial statement audit is most appropriate to communicate with
those charged with governance?
A. Clearance explanations of workpaper review notes.
B. Major variances in budgeted versus actual audit hours.
C. The nature and timing of detailed audit procedures.
D. An overview of the planned scope and timing of the audit.

Attribute Value
Item ID 24735
Area 1
Group 6
Topic 0
Key D

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 2016 AICPA Released Questions AUD

MULTIPLE CHOICE - MEDIUM

Which of the following procedures is an accountant required to perform before issuing a compilation
report under Statements on Standards for Accounting and Review Services (SSARS)?
A. Make inquiries of third parties regarding liabilities that appear in the financial statements.
B. Read the financial statements and consider whether such financial statements appear to be free
from obvious material errors.
C. Obtain a letter supporting management representations in the financial statements.
D. Review account balances for material changes subsequent to the year end.

Attribute Value
Item ID 11299
Area 5
Group 2
Topic 5
Key B

Which of the following engagements may an accountant or practitioner perform when there is a lack of
independence?
A. Compilation.
B. Agreed-upon procedures.
C. Review.
D. Attestation.

Attribute Value
Item ID 12209
Area 5
Group 1
Topic 2
Key A

Which of the following ultimately determines the sufficiency and appropriateness of audit evidence to
support the auditor's conclusions?
A. Professional requirements.
B. Professional standards.
C. Professional experience.
D. Professional judgment.

Attribute Value
Item ID 12967
Area 4
Group 2
Topic 0
Key D

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 2016 AICPA Released Questions AUD

Which of the following assertions is most closely related to the audit objective to verify that all sales have
been recorded?
A. Completeness.
B. Occurrence.
C. Accuracy.
D. Cutoff.

Attribute Value
Item ID 13353
Area 2
Group 8
Topic 1
Key A

Which of the following best identifies the effect of an increase in the risk of material misstatement on
detection risk and the extent of substantive procedures?
A. The acceptable level of detection risk decreases, and the extent of substantive procedures
increases.
B. The acceptable level of detection risk increases, and the extent of substantive procedures
increases.
C. The acceptable level of detection risk decreases, and the extent of substantive procedures
decreases.
D. The acceptable level of detection risk increases, and the extent of substantive procedures
decreases.

Attribute Value
Item ID 13507
Area 3
Group 1
Topic 1
Key A

Which of the following is an analytical procedure?

A. Comparing current-year balances to prior-year balances.
B. Matching sales invoices to shipping documents.
C. Confirming accounts receivable.
D. Making inquiries of client management.

Attribute Value
Item ID 13815
Area 3
Group 2
Topic 7
Key A

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 2016 AICPA Released Questions AUD

An entity has an internal audit staff that the independent auditor assessed to be both competent and
objective. Which of the following statements is correct about the independent auditor's use of the internal
auditors to provide direct assistance in performing tests of controls?
A. The auditor cannot rely on any of the work of the internal auditors.
B. The internal auditors should not be performing any audit procedures that the auditor is able to
perform.
C. The auditor can use internal auditors to assess control risk, but cannot rely on their tests of
controls.
D. The auditor should supervise, review, evaluate, and test the work performed by the internal
auditors.

Attribute Value
Item ID 13935
Area 1
Group 5
Topic 3
Key D

Which of the following activities would be most helpful to a CPA in deciding whether to accept a new audit
client?
A. Reviewing industry benchmarking data.
B. Considering the client's compensation methods.
C. Evaluating the CPA's ability to properly service the client.
D. Evaluating the most recent peer review of the client's previous auditor.

Attribute Value
Item ID 14173
Area 1
Group 2
Topic 0
Key C

Which of the following statements correctly describes the "top-down approach" used during an audit of
internal control over financial reporting?
A. Begin reviewing balance sheet accounts and then review income statement accounts.
B. Begin reviewing income statement accounts and then review balance sheet accounts.
C. Begin by understanding the overall risks to internal control over financial reporting at the financial
statement level.
D. Begin by understanding the overall risks to internal control over financial reporting at the general
ledger level.

Attribute Value
Item ID 15501
Area 2
Group 6
Topic 1
Key C

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 2016 AICPA Released Questions AUD

Each of the following items should be included in a presentation of pro forma financial statements, except
A. The significant assumptions used in developing the pro forma information.
B. The source of the historical information on which the pro forma information is based.
C. An indication that the pro forma information is not necessarily indicative of results.
D. All direct and indirect effects attributed to the related transaction.

Attribute Value
Item ID 15555
Area 4
Group 10
Topic 8
Key D

What standards are applicable for a compilation of a nonissuer?

A. Statements on Auditing Standards
B. Statements on Standards for Accounting and Review Services (SSARS).
C. Statements on Standards for Attestation Engagements (SSAE).
D. Generally accepted auditing standards (GAAS).

Attribute Value
Item ID 15739
Area 5
Group 1
Topic 1
Key B

An auditor of a nonissuer exercising professional skepticism with respect to the risks of material
misstatement due to fraud will most appropriately
A. Adopt an attitude of acceptance unless evidence indicates otherwise.
B. Authenticate documents used as audit evidence.
C. Consider the reliability of information to be used as audit evidence.
D. Assess the entity's document-retention controls before using documents as audit evidence.

Attribute Value
Item ID 16445
Area 2
Group 3
Topic 4
Key C

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 2016 AICPA Released Questions AUD

If an auditor of an issuer examines purchase orders obtained from the issuer to verify proper authorization
of transactions, then the auditor is conducting
A. A reperformance.
B. A confirmation.
C. An observation.
D. An inspection.

Attribute Value
Item ID 16831
Area 3
Group 2
Topic 4
Key D

In a financial statement audit of a nonissuer, an auditor would consider a judgmental misstatement to be

a misstatement that
A. Involves an estimate.
B. Exists because of nonstatistical sampling performed by the auditor.
C. Arises from a flaw in the accounting system.
D. Arises from a routine calculation.

Attribute Value
Item ID 16929
Area 4
Group 5
Topic 0
Key A

Which of the following statements is correct with respect to fraud encountered during an audit
engagement of a nonissuer?
A. The distinguishing factor between fraud and error is the materiality of the transaction involved.
B. An auditor who initially detects fraud ultimately makes the legal determination of whether fraud
has actually occurred.
C. Fraudulent financial reporting can include the unintentional misstatement of amounts or
disclosures in financial statements.
D. It is often difficult to detect fraudulent intent in matters involving accounting estimates and the
application of accounting principles.

Attribute Value
Item ID 17597
Area 2
Group 3
Topic 1
Key D

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 2016 AICPA Released Questions AUD

A senior auditor conducted a dual-purpose test on a client's invoice to determine whether the invoice was
approved and to ascertain the amount and other terms of the invoice. Which of the following lists two
tests that the auditor performed?
A. Substantive procedures and analytical procedures.
B. Substantive analytical procedures and tests of controls.
C. Tests of controls and tests of details.
D. Tests of details and substantive procedures.

Attribute Value
Item ID 20817
Area 3
Group 2
Topic 1
Key C

Manual controls would most likely be more suitable than automated controls for which of the following?
A. Large, unusual, or nonrecurring transactions.
B. High-volume transactions that require additional calculations.
C. Situations with routine errors that can be predicted and corrected.
D. Circumstances that require a high degree of accuracy.

Attribute Value
Item ID 21137
Area 2
Group 6
Topic 3
Key A

According to the PCAOB, each of the following statements is true with respect to the auditor's
responsibility to communicate material weaknesses in internal control over financial reporting, except:
A. All such weaknesses must be communicated in writing to the audit committee.
B. All such weaknesses must be communicated in writing to management.
C. All such weaknesses must be communicated prior to the issuance of the auditor's report on
internal control over financial reporting.
D. All such weaknesses must be communicated in writing to all stockholders.

Attribute Value
Item ID 22093
Area 3
Group 2
Topic 19
Key D

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 2016 AICPA Released Questions AUD

According to SEC regulations, each of the following non-audit services will impair an auditor's
independence, except
A. Designing a management information system that aggregates source data underlying the
financial statements.
B. Performing an internal audit function.
C. Preparing the audit client's financial statements that are filed with the SEC.
D. Preparing the audit client's tax return.

Attribute Value
Item ID 22411
Area 6
Group 1
Topic 2
Key D

At least how often should the PCAOB inspect a registered public accounting firm that regularly issues
audit reports to 50 issuers?
A. Annually.
B. Every two years.
C. Every three years.
D. As requested by the firm.

Attribute Value
Item ID 22759
Area 6
Group 2
Topic 2
Key C

According to the IFAC Code of Ethics for Professional Accountants, in deciding whether to disclose
confidential information, the professional accountant should consider which of the following relevant
factors?
A. The time period to which the information relates.
B. Whether the anticipated recipients are appropriate and the type of communication that is
expected.
C. Whether the information was obtained directly or indirectly and if it will benefit the recipient.
D. Whether the information was obtained performing a paid service.

Attribute Value
Item ID 22939
Area 6
Group 1
Topic 5
Key B

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 2016 AICPA Released Questions AUD

When an accountant compiles a client's financial statements accompanied by supplemental information,

which of the following is a required element of the accountant's separate report on the supplemental
information?
A. A statement that the information has been compiled from information that is the representation of
management without audit or review.
B. A list of the procedures performed by the accountant during the compilation.
C. A statement that the accountant did not become aware of any material modifications that should
be made to the information.
D. A confirmation of the independence of the accountant with respect to the information presented.

Attribute Value
Item ID 24181
Area 5
Group 3
Topic 6
Key A

According to the AICPA Code of Professional Conduct, what would a covered member most appropriately
do upon learning that another member of an attest engagement team is considering employment with the
client?
A. Notify an appropriate person in the firm.
B. Disassociate from the engagement.
C. Report the situation to the client's board of directors.
D. Advise the engagement partner to withdraw the firm from the engagement.

Attribute Value
Item ID 24347
Area 6
Group 1
Topic 1
Key A

Which of the following best describes the earliest date for an auditor's report?
A. The last day of audit field work.
B. The date all audit procedures have been completed and the audit file has been assembled.
C. The date audit documentation was completed.
D. The date the auditor has obtained sufficient appropriate audit evidence to support the opinion.

Attribute Value
Item ID 24611
Area 4
Group 10
Topic 1
Key D

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 2016 AICPA Released Questions AUD

When an auditor of a parent nonissuer is also the auditor of a component, then each of the following
factors would ordinarily influence the decision to obtain a separate engagement letter from the
component, except
A. The legal requirements regarding the appointment of the auditor.
B. Whether a separate audit report is to be issued on the component.
C. Whether there has been any turnover of the component's board members.
D. The degree of independence of the component management from the parent entity.

Attribute Value
Item ID 74245
Area 1
Group 4
Topic 0
Key C

20
 2016 AICPA Released Questions AUD

TASK-BASED SIMULATIONS (TBS)

Task 1535_01

21
 2016 AICPA Released Questions AUD

Task 1535_01 (DP)

22
 2016 AICPA Released Questions AUD

Task 4871_01

23
 2016 AICPA Released Questions AUD

Task 4871_01 (FI-Resource)

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 2016 AICPA Released Questions AUD

Task 7111_01

25