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Old October 12th, 2017, 06:52 PM
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Default CPA Exam

My friend is preparing for CPA Exam. He needs some sample questions for CPA Exam. So can anybody provide sample questions for this exam for better preparation?
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Old October 13th, 2017, 12:54 PM
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Default Re: CPA Exam

As you are looking for sample questions for CPA Exam for preparation, so here I am providing sample questions:

CPA Exam Sample Questions
QUESTION: Which organization developed the framework most commonly used by the auditing profession for benchmarking internal controls of non-issuers?
The Committee of Sponsoring Organizations of the Treadway Commission
The Public Company Accounting Oversight Board
The Financial Reporting Council
The AICPA
ANSWER: Answer a

QUESTION: As specified in Title II of the Sarbanes Oxley Act (SOX), which of the following non-audit services to audit clients are not prohibited from being performed by a registered public accounting firm if the preapproved by the audit committee and disclosed to the SEC?
Legal services or expert services unrelated to the audit.
Human resource services.
Internal audit outsourcing services.
Tax services.
ANSWER: Answer d

QUESTION: What is the most likely opportunity for theft or fraud by employees?
The belief that the theft is a common practice.
Needlessly complex transactions.
Access to assets that are easily traced.
Stock options that expire soon after the release of financial statements.
ANSWER: Answer (b)

QUESTION: As part of its system of internal control, X Company requires that all sales orders received from customers receive approval from the credit department before they are fulfilled. What type of control activity is this?
Physical control
Information processing control
Performance indicator
Segregation of duties
ANSWER: Answer (b)

QUESTION: According to professional standards, which of the following circumstances will impair a CPA’s independence?
A partner in the CPA’s firm who works in another state and does no work for the client has a material indirect financial interest in the client.
The CPA has a car loan with a financial institution client.
The CPA’s nondependent stepchild has a material indirect financial interest in the client.
The client recently exceeded the 90-day limit for outstanding unpaid invoices due to the CPA.
ANSWER: Answer (c)

QUESTION: According to Title II of the Sarbanes Oxley Act (SOX) of 2002, which of the following nonaudit services is not prohibited from being performed for an audit client by a registered public accounting firm?
Bookkeeping services.
Appraisal or valuation services.
Internal audit services
Tax services.
ANSWER: Answer (d)

QUESTION: Which of the following assertions applies to an audit of inventory?
Occurrence
Classification
Cutoff
Completeness
ANSWER: Answer (d)

QUESTION: Audit documentation should enable an experienced auditor without direct knowledge about the client to understand the procedures performed, the evidence obtained, and the conclusions reached by the auditor. Audit documentation should include:

Audit Programs Documentation of Control Risk Client Representation Letter
a. Yes Yes Yes
b. Yes No Yes
c. Yes Yes No
d. No Yes Yes
ANSWER: Answer (a)

QUESTION: Which of the following would be considered corroborative evidence?
Checks, invoices, and contracts.
General and subsidiary ledgers.
Minutes from meetings of the board of directors.
Worksheets and spreadsheets supporting cost allocations.
ANSWER: Answer (c)

QUESTION: An auditor discovers several immaterial errors that the auditor determines do not, individually or in the aggregate, cause the financial statements to be materially misstated. The auditor proposes adjusting entries to the client, who refuses to correct the errors. Which of the following best summarizes the steps the auditor should take?
Document the errors and the conclusion that the financial statements are free from material misstatement.
Withdraw from the engagement because the client’s refusal to correct the errors is a scope limitation.
Issue a qualified, “except for” opinion on the financial statements because the client refuses to correct the errors.
Correct the errors on the client’s behalf, and then issue the audit report.
ANSWER: Answer (c)

QUESTION: Which of the following financial ratios would be most useful to an auditor seeking information on a company’s ability to cover current obligations?
Earnings per share
Quick ratio
Gross profit margin
Sales to assets
ANSWER: Answer (b)

QUESTION: In a probability-proportional-to-size (PPS) sample with a sampling interval of $10,000, an auditor discovered that a selected account receivable with a recorded amount of $12,000 had an audited amount of $11,000. If this were the only misstatement discovered by the auditor, the projected misstatement of this sample would be
$1,000
$833
$960
$10,000
ANSWER: Answer (a)
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