Browse papers
LevelCPA — Auditing & Attestation
SubjectCPA — Auditing & Attestation
Year2025 BS
Exam sessionModel questions
Full marks99
Time allowed240 minutes
Questions10, all with step-by-step solutions
A

Auditing & Attestation

Select the best answer.

10 questions·1 mark each
1Multiple choice1 mark

When developing an overall audit strategy, which of the following factors is least likely to affect the auditor's determination of materiality for the financial statements as a whole?

  • a

    The entity's industry and regulatory environment

  • b

    The nature and extent of misstatements identified in prior audits

  • c

    The color scheme used in the entity's annual report

  • d

    The ownership structure and financing of the entity

Correct answer: c

The color scheme used in the entity's annual report

The color scheme of the annual report has no bearing on materiality. Per AU-C 320, materiality is influenced by the entity's financial benchmarks, industry, regulatory environment, and prior audit results.

audit-planning
2Multiple choice1 mark

Under COSO's Internal Control — Integrated Framework (2013), which of the following is not one of the five components of internal control?

  • a

    Control environment

  • b

    Risk assessment

  • c

    Profit maximization

  • d

    Monitoring activities

Correct answer: c

Profit maximization

The five COSO components are: Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities. Profit maximization is not a component of internal control.

internal-controls
3Multiple choice1 mark

Which of the following audit procedures provides the most reliable evidence regarding the existence of inventory?

  • a

    Inquiry of warehouse personnel

  • b

    Observation of the client's physical inventory count

  • c

    Review of perpetual inventory records

  • d

    Analytical procedures comparing inventory ratios to prior years

Correct answer: b

Observation of the client's physical inventory count

Per AU-C 501, observation of the physical inventory count provides the most reliable evidence for the existence assertion.

audit-evidence
4Multiple choice1 mark

An auditor issues a report containing a qualified opinion due to a material misstatement. The basis for the qualified opinion paragraph should be placed:

  • a

    After the opinion paragraph

  • b

    Immediately before the opinion paragraph

  • c

    In the notes to the financial statements

  • d

    As an attachment to the engagement letter

Correct answer: b

Immediately before the opinion paragraph

Under AU-C 705, when issuing a qualified opinion, the Basis for Qualified Opinion paragraph is placed immediately before the Opinion paragraph to provide context for the modification.

audit-reports
5Multiple choice1 mark

In an examination engagement under the SSAE standards, the practitioner's report should express:

  • a

    Negative assurance on the subject matter

  • b

    An opinion on the subject matter or assertion

  • c

    A compilation disclaimer

  • d

    Limited assurance with no opinion

Correct answer: b

An opinion on the subject matter or assertion

Under AT-C 205, an examination engagement results in the practitioner expressing an opinion. A review engagement provides limited (negative) assurance, while a compilation provides no assurance.

attestation-engagements
6Multiple choice1 mark

Under the AICPA Code of Professional Conduct, which of the following actions would most likely impair an auditor's independence?

  • a

    Providing tax return preparation services to an audit client

  • b

    Having a direct financial interest in an audit client

  • c

    Performing a consulting engagement for a non-audit client

  • d

    Using the work of an auditor's specialist

Correct answer: b

Having a direct financial interest in an audit client

A direct financial interest in an audit client impairs independence regardless of materiality under ET §1.210. Tax preparation services are generally permissible with proper safeguards.

professional-responsibilities
7Multiple choice1 mark

An auditor assesses the risk of material misstatement at the financial statement level as high. Which of the following responses is most appropriate?

  • a

    Assign less experienced staff to the engagement

  • b

    Reduce the extent of substantive testing

  • c

    Assign more experienced staff and increase the level of supervision

  • d

    Issue a disclaimer of opinion without performing further procedures

Correct answer: c

Assign more experienced staff and increase the level of supervision

Per AU-C 315 and AU-C 330, when risk at the financial statement level is high, the auditor should assign more experienced personnel, increase supervision, and modify the overall audit strategy.

audit-planning
8Multiple choice1 mark

Which of the following is the best example of a detective control?

  • a

    Requiring dual authorization for wire transfers

  • b

    Bank reconciliations performed monthly

  • c

    Physical locks on the server room

  • d

    Segregation of duties between cash handling and recording

Correct answer: b

Bank reconciliations performed monthly

Bank reconciliations are detective controls because they identify discrepancies after transactions have occurred. Dual authorization, physical locks, and segregation of duties are preventive controls.

internal-controls
9Multiple choice1 mark

An auditor sends positive confirmations to a sample of accounts receivable customers. If a customer does not respond, the auditor should:

  • a

    Accept the book value as correct

  • b

    Issue a qualified opinion

  • c

    Perform alternative audit procedures

  • d

    Increase the materiality threshold

Correct answer: c

Perform alternative audit procedures

Per AU-C 505, when no response is received to a positive confirmation, the auditor should perform alternative procedures such as examining subsequent cash receipts, shipping documents, or other corroborating evidence.

audit-evidence
10Multiple choice1 mark

When an auditor identifies a material uncertainty related to going concern, and management's disclosures are adequate, the auditor should:

  • a

    Issue an adverse opinion

  • b

    Include an Emphasis-of-Matter paragraph in an unmodified opinion

  • c

    Withdraw from the engagement

  • d

    Issue a qualified opinion due to scope limitation

Correct answer: b

Include an Emphasis-of-Matter paragraph in an unmodified opinion

Per AU-C 570, when a material uncertainty about going concern exists but disclosures are adequate, the auditor includes an Emphasis-of-Matter paragraph and issues an unmodified opinion.

audit-reports

Frequently asked questions

Where can I find the CPA — Auditing & Attestation CPA — Auditing & Attestation question paper 2025?
The full CPA — Auditing & Attestation CPA — Auditing & Attestation 2025 (Model questions) question paper is available free on Kekkei. You can read every question online and attempt the paper under timed exam conditions.
Does the CPA — Auditing & Attestation 2025 paper come with solutions?
Yes. Every question on this CPA — Auditing & Attestation past paper includes a step-by-step solution, plus instant AI feedback when you attempt it on Kekkei.
How many marks is the CPA — Auditing & Attestation CPA — Auditing & Attestation 2025 paper?
The CPA — Auditing & Attestation CPA — Auditing & Attestation 2025 paper carries 99 full marks and is meant to be completed in 240 minutes, across 10 questions.
Is practising this CPA — Auditing & Attestation past paper free?
Yes — reading and attempting this CPA — Auditing & Attestation past paper on Kekkei is completely free.