Important AICPA-Auditing CPA Exam Questions

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AICPA Auditing and Attestation CPA-Auditing Exam

Attempt the Uniform CPA Examination practice test and solve real exam-like CPA-Auditing questions to prepare efficiently and increase your chances of success. Our AICPA-Auditing practice questions match the actual CPA Auditing and Attestation exam format, helping you enhance confidence and improve performance. With our CPA-Auditing practice exam software, you can analyze your performance, identify weak areas, and work on them effectively to boost your final Uniform CPA Examination exam score.

Vendor:	AICPA
Exam Name:	CPA Auditing and Attestation
Registration Code:	CPA-Auditing
Related Certification:	AICPA CPA Certification
Exam Track:	AICPA Auditing management
Exam Audience:	Financial Manager,

Total Questions

1025

Last Updated

09-07-2026

Exam Duration

120 MINUTES

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Question: 1

For which of the following audit tests would a CPA most likely use attribute sampling?

AIdentifying entries posted to incorrect accounts.

BEstimating the amount in an expense account.

CEvaluating the reasonableness of depreciation expense.

DSelecting receivables for confirmation of account balances.

Answer: A

Explanation:

Choice 'a' is correct. Attribute sampling is used to estimate a rate of occurrence, and often involves a yes-no question. Attribute sampling could be used to determine the error rate in posting journal entries, perhaps by asking, 'Is the entry posted to the proper account?'

Choice 'b' is incorrect. Variables sampling is typically used to estimate a numerical quantity, such as the amount in an expense account.

Choice 'c' is incorrect. Variables sampling is typically used to estimate a numerical quantity, such as a reasonable amount for depreciation expense.

Choice 'd' is incorrect. Attribute sampling is used to estimate a rate of occurrence, not to select the items to include in a sample.

Question: 2

Which of the following controls would be most effective in assuring that recorded purchases are free of material errors?

AThe receiving department compares the quantity ordered on purchase orders with the quantity received on receiving reports.

BVendor's invoices are compared with purchase orders by an employee who is independent of the receiving department.

CReceiving reports require the signature of the individual who authorized the purchase.

DPurchase orders, receiving reports, and vendor's invoices are independently matched in preparing vouchers.

Answer: D

Explanation:

Choice 'd' is correct. The most effective control in assuring that recorded purchases are free of material errors is the independent matching of the purchase order, receiving report, and vendor's invoices in preparing the vouchers on which the disbursement check is based.

Choice 'a' is incorrect. The receiving department should not have access to the quantity ordered on the purchase order. This forces receiving department employees to actually perform an independent count.

Choice 'b' is incorrect. It is not enough to compare only vendor invoices and purchase orders, as this will still allow payment for goods that were not received.

Choice 'c' is incorrect. Requiring that receiving reports be authorized by the individual who authorized the purchase does not ensure that the invoice and the related payment will be properly recorded.

Question: 3

Which of the following audit techniques ordinarily would provide an auditor with the least assurance about the operating effectiveness of an internal control activity?

AInquiry of client personnel.

BInspection of documents and reports.

CObservation of client personnel.

DPreparation of system flowcharts.
Explanation
Choice 'd' is correct. Preparation of system flowcharts may aid in the auditor's understanding of internal control, but would not indicate whether controls were actually operating as designed.
Choices 'a', 'b', and 'c' are incorrect. Inquiry, inspection, observation (and reperformance) are all tests that may be used to evaluate the operating effectiveness of a control.

Answer: D

Question: 4

The most reliable procedure for an auditor to use to test the existence of a client's inventory at an outside location would be to:

AObserve physical counts of the inventory items.

BTrace the total on the inventory listing to the general ledger inventory account.

CObtain a confirmation from the client indicating inventory ownership.

DAnalytically compare the current-year inventory balance to the prior-year balance.

Answer: A

Explanation:

Choice 'a' is correct. The auditor's personal observation is generally one of the most reliable forms of evidence. Observing physical inventory counts provides reliable evidence that the inventory actually exists.

Choice 'b' is incorrect. Tracing totals from the inventory listing to the general ledger inventory account provides evidence of completeness, not existence.

Choice 'c' is incorrect. A confirmation from the client indicating ownership provides some evidence regarding rights and obligations, but does not provide evidence of existence.

Choice 'd' is incorrect. Analytical comparisons of current year to prior year inventory balances might provide some evidence regarding completeness, existence, and valuation, but this is not as reliable a procedure for verifying existence as is the auditor's direct personal observation.

Question: 5

Which of the following procedures should an auditor perform concerning litigation, claims, and assessments?

AInspect legal documents in the possession of the client's lawyer that are relevant to pending litigation and unasserted claims and assessments.

BDiscuss with the client's lawyer its philosophy of defending litigation, claims, and assessments that have a high probability of being resolved unfavorably.

CConfirm directly with the client's lawyer that all litigation, claims, and assessments have been properly recorded in the financial statements.

DObtain assurance from management that it has disclosed all unasserted claims that its lawyer has advised are probable of assertion.

Answer: D

Explanation:

Choice 'd' is correct. The auditor should obtain assurance from management that it has disclosed all unasserted claims that its lawyer has advised are probable of assertion.

Choice 'a' is incorrect. The auditor should examine documents in the client's possession concerning litigation, claims, and assessments, including correspondence and invoices from lawyers. The auditor does not generally examine documents held by the client's lawyer.

Choice 'b' is incorrect. If the lawyer has indicated that there is a high probability of a litigation, claim, or assessment being resolved unfavorably, the auditor would use this information, together with an estimate of the range of potential loss (if available), to evaluate management's financial statement presentation.

The auditor would not generally discuss with the client's lawyer its defense philosophy regarding such matters.

Choice 'c' is incorrect. It is the auditor's responsibility (not the lawyer's) to determine whether litigation, claims, and assessments have been adequately recorded or disclosed in the financial statements.

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