CPA Exam Sample Questions Pt. 1

Quiz by , created about 5 years ago

Audit Testing sample questions from the CPA Exam.

Created by nedtuohy about 5 years ago
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CPA Exam Sample Questions Pt. 2

Question 1

An auditor confirms a representative number of A/R and investigates respondents exceptions and comments. By this procedure the auditor would be most likely to learn which of the following?
  • One of the cashiers has been engaged in lapping.
  • One of the sales clerks has not been preparing charge slips for credit sales to family and friends.
  • The EDP control clerk has been removing all sales invoices applicable to his account from the data file.
  • The credit manager has misappropriated remittances from customers whose accounts have been written-off.

Question 2

Customers having substantial year-end past due balances fail to reply after second request forms have been mailed directly to them. Which of the following is the most appropriate audit procedure?
  • Examine shipping documents.
  • Review collections during the year being examined.
  • Intensify the study of the client's internal control system with respect to receivables.
  • Increase the balance in the accounts receivable allowance (contra) account.

Question 3

To determine that sales transactions have been recorded in the proper accounting period, the auditor performs a cut-off review. Which of the following best describes the overall approach used when performing a cut-off review?
  • Ascertain that management has included in the representation letter a statement that transactions have been accounted for in the proper accounting period.
  • Confirm year-end transactions with regular customers.
  • Examine cash receipts in the subsequent period.
  • Analyze transactions occurring within a few days before and after year-end.

Question 4

The confirmation of the client's trade accounts receivable is a means of obtaining evidential matter and is specifically considered to be generally accepted auditing
  • Principle
  • Procedure
  • Standard
  • Practice

Question 5

Approximately 95% of returned accounts receivable confirmations indicated that the customer owed a smaller balance than the amount confirmed. This might be explained by the fact that
  • The cash receipts journal was held open after year-end.
  • here is a large number of unrecorded liabilities.
  • The sales journal was closed prior to year end.
  • The sales journal was held open after year-end.