Curious about Actual AICPA Auditing and Attestation Exam Questions?

Correct : A

Choice 'a' is correct. In microcomputer audit applications, efficient and effective system usage requires:

(1) identification of the appropriate audit tasks and

(2) appropriate software to perform the selected audit tasks.

Choice 'b' is incorrect. Although microcomputer access to client data is desirable, it is not required.

Choice 'c' is incorrect. Although microcomputer access to client data is desirable, it is not required. Also, microcomputer audit applications need not be applicable to several clients to be efficient and effective.

Choice 'd' is incorrect. Microcomputer audit applications need not be applicable to several clients to be efficient and effective.

Correct : A

Choice 'a' is correct. An auditor should obtain management's written assertion about the effectiveness of the entity's internal control.

Choice 'b' is incorrect. The accountant should disclaim (not qualify) an opinion on management's assertions that the cost of correcting weaknesses exceeds the benefits.

Choice 'c' is incorrect. The accountant has no responsibility to evaluate the effect of subsequent events. In fact, the report on an entity's internal control specifically states that projections of the internal control evaluation to future periods is inappropriate.

Choice 'd' is incorrect. The accountant does provide an opinion (and not a disclaimer) on the effective operation of internal control.

Correct : B

Choice 'b' is correct. An integrated test facility runs test transactions through the 'live' system and posts to simulated (dummy) files to provide an auditor with information about the operating effectiveness of controls.

Choice 'a' is incorrect. Controlled reprocessing of transactions is a less common term used for parallel processing where the auditor writes a program to 'reprocess' some or all of the client's live data. It does not involve the use of simulated files.

Choice 'c' is incorrect. Input validation is a general description of any test that ensures that the input was accurate. It does not involve the use of simulated files.

Choice 'd' is incorrect. Program code checking is the review of the client's program source code by a qualified auditor/IT specialist. It does not involve the use of simulated files.

Correct : B

Choice 'b' is correct. A material weakness in internal control is a significant deficiency that results in more than a remote likelihood that a material misstatement in the financial statements will not be prevented or detected.

Choice 'a' is incorrect. The auditor is required to separately identify and communicate significant deficiencies and material weaknesses.

Choice 'c' is incorrect. Significant deficiencies (including material weaknesses) are generally communicated to the appropriate parties after the audit is complete. They may, at the auditor's discretion, be communicated during the audit, but there is no requirement for immediate communication.

Choice 'd' is incorrect. A material weakness is a significant deficiency that results in more than a remote likelihood that a material misstatement in the financial statements will not be prevented or detected. Not all significant deficiencies will meet this description.

Correct : D

Choice 'd' is correct. The auditor should separately identify those significant deficiencies that are considered to be material weaknesses.

Choice 'a' is incorrect. Not all significant deficiencies are material weaknesses.

Choice 'b' is incorrect. The auditor is not obligated to search for significant deficiencies. The auditor is obligated to communicate to the client any significant deficiencies identified while auditing the financial statements.

Choice 'c' is incorrect. The auditor is obligated to re-communicate significant deficiencies each year, even if management has acknowledged its understanding of such deficiencies.