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Are you ready to pass the AUD section of the CPA Exam? Find out by testing yourself with free CPA Exam questions from Wiley CPAexcel. This download includes actual AICPA-released CPA Exam questions, as well as sample questions written by our team of experts. It also includes detailed answer explanations to help you understand your areas of weakness. These CPA Exam practice questions mimic the actual CPA Exam and feature the latest topics you’ll see on exam day.

The Auditing and Attestation (AUD) section of the CPA Exam tests your skills in auditing and attestation with 72 MCQs and 8 TBSs, which are equally weighted in terms of scoring. The MCQ testlets account for 50% of this section’s score while the TBSs make up the remaining 50%.

Here’s a sneak peak of what you’ll get from your free download of CPA Questions:

Question 1

The controller of a small utility company has interviewed audit firms proposing to perform the annual audit of their employee benefit plan. According to the guidelines of the Department of Labor (DOL), the selected auditor must be

A. The firm that proposes the lowest fee for the work required.
B. Independent for purposes of examining financial information required to be filed annually with the DOL.
C. Included on the list of firms approved by the DOL.
D. Independent of the utility company and NOT relying on its services.

B is Correct

DOL guidelines do require independent for such work. Although DOL independence rules differ from AICPA rules, independence is still required.

Question 2

In AICPA professional standards, the word should indicates an (a)

A. Interpretive suggestion that does not constitute a professional requirement.
B. Unconditional requirement with which the auditor is obligated to comply.
C. Presumptively mandatory requirement from which the CPA may depart in rare circumstances.
D. Recommendation that has no authoritative status.

C is Correct

The word should indicates a presumptively mandatory requirement.

Question 3

A government internal audit function is presumed to be free from organizational independence impairments for reporting internally when the head of the organization

A. Is not accountable to those charged with governance.
B. Performs auditing procedures that are consistent with generally accepted accounting principles.
C. Is a line-manager of the unit under audit.
D. Is removed from political pressure to conduct audits objectively, without fear of political reprisal.

D is Correct

Under GAGAS, a government internal audit function can be presumed to be free from organizational impairments to independence for reporting internally if the head of the audit organization meets all of the following criteria: (a) is accountable to the head or deputy head of the government entity or to those charged with governance; (b) reports the audit results both to the head or deputy head of the government entity and to those charged with governance; (c) is located organizationally outside the staff or line-management function of the unit under audit; (d) has access to those charged with governance; and (e) is sufficiently removed from political pressures to conduct audits and report findings, opinions, and conclusions objectively without fear of political reprisal.

Question 4

King, CPA, was engaged to audit the financial statements of Newton Company after its fiscal year had ended. King neither observed the inventory count nor confirmed the receivables by direct communication with debtors, but was satisfied concerning both after applying alternative procedures.
King’s auditor’s report most likely contained a(n)

A. Qualified opinion
B. Disclaimer of opinion.
C. Unmodified opinion.
D. Unmodified opinion with an other-matter paragraph.

C is Correct

As long as the auditor is satisfied regarding the fair presentation of the accounts and financial statements in accordance with GAAP, an unmodified opinion may be expressed.

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