Audit Reports

Practice Questions

CPA Auditing and Attestation (AUD) › Audit Reports

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1

Which statement is true regarding a compilation report?

2

Of the following factors, which should most influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?

3

An auditor of a non-issuer must conduct the audit in accordance with A) ASB Standards B) PCAOB Standards

4

John Ryan, CPA needs to research guidance for the engagement of his client. The client is a private unaudited non-issuer and wants a compilation completed. In which of the following sections of various literature sources would John find relevant guidance?

5

Which statement is true regarding a compilation report?

6

In the course of auditing Litmus, Inc., the auditors have uncovered a scheme by management to overvalue inventory in order to adhere to bond covenants. The firm approached management and indicated the practice would stop; however, they did not want to correct this year’s financial statements. The auditor should:

7

An auditor of a non-issuer must conduct the audit in accordance with A) ASB Standards B) PCAOB Standards

8

Of the following factors, which should most influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?

9

In the course of auditing Litmus, Inc., the auditors have uncovered a scheme by management to overvalue inventory in order to adhere to bond covenants. The firm approached management and indicated the practice would stop; however, they did not want to correct this year’s financial statements. The auditor should:

10

John Ryan, CPA needs to research guidance for the engagement of his client. The client is a private unaudited non-issuer and wants a compilation completed. In which of the following sections of various literature sources would John find relevant guidance?

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