Sample Questions
Question 1
Easy
A CPA firm's agreed-upon procedures engagement is governed by:
Solution
B is correct. Agreed-upon procedures engagements are attestation engagements governed by SSAE 19, codified in AT-C 215. The practitioner performs specific procedures agreed to by the engaging party and reports the findings without expressing an opinion or conclusion. The auditing standards (AU-C 935) govern compliance audits, SSARS (AR-C 90) governs reviews of financial statements, and AT-C 205 governs assertion-based examination engagements, in which an opinion providing reasonable assurance is expressed.
Question 2
Medium
Which procedures are required in a review of interim financial information?
Solution
B is correct.
AU-C 930 limits the required procedures to inquiry of management, analytical procedures, reading the minutes of board meetings, and obtaining written representations from management. The auditor does not perform tests of controls, confirmations, inventory observations, or detailed substantive testing unless inquiry or analytical procedures identify specific issues requiring expanded procedures.
AU-C 930 limits the required procedures to inquiry of management, analytical procedures, reading the minutes of board meetings, and obtaining written representations from management. The auditor does not perform tests of controls, confirmations, inventory observations, or detailed substantive testing unless inquiry or analytical procedures identify specific issues requiring expanded procedures.
Question 3
Hard
For a financial statement audit under GAGAS and a single audit under the Uniform Guidance, which statement is *not* correct?
Solution
B is correct. A single audit requires a report on internal control over compliance, but does not require an opinion on control effectiveness. The separate major-program compliance report contains an opinion or disclaimer. GAGAS reporting describes the scope and results of internal control testing and may reference findings in an accompanying schedule. See 2 CFR 200.515(b)-(c), Audit Reporting; GAGAS, chapter 6, financial-audit reporting.
