Free AICPA CPA-Auditing Exam Questions

Become AICPA Certified with updated CPA-Auditing exam questions and correct answers

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Total 1026 Questions | Updated On: Oct 25, 2026

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Question 1

Which of the following fraudulent actMties most likely could be perpetrated due to the lack of effective internal controls in the revenue cycle?

A : Fictitious transactions may be recorded that cause an understatement of revenues and overstatement of receivables

B : Claims received from customers for goods returned may be intentionally recorded in other customers' accounts.

C : Authorization of credit memos by personnel who receive cash may permit the misappropriation of cash.

D : The failure to prepare shipping documents may cause an overstatement of inventory balances.

Answer: C

Question 2

Which of the following is the primary reason that many auditors hesitate to use embedded audit modules?

A : Embedded audit modules cannot be protected from computer viruses.

B : Auditors are required to monitor embedded audit modules continuously to obtain valid results.

C : Embedded audit modules can easily be modified through management tampering.

D : Auditors are required to be involved in the system design of the application to be monitored.

Answer: D

Question 3

Which of the following controls is most likely to prevent the improper disposition of equipment?

A : A separation of duties between those authorized to dispose of equipment and those authorized to approve removal work orders.

B : The use of serial numbers to identify equipment that could be sold.

C : Periodic comparison of removal work orders to authorizing documentation.

D : A periodic analysis of the scrap sales and the repairs and maintenance accounts.

Answer: A

Question 4

For which of the following audit tests would a CPA most likely use attribute sampling?

A : Identifying entries posted to incorrect accounts.

B : Estimating the amount in an expense account.

C : Evaluating the reasonableness of depreciation expense.

D : Selecting receivables for confirmation of account balances.

Answer: A

Question 5

An advantage of using statistical over nonstatistical sampling methods in tests of controls is that the statistical methods:

A : Can more easily convert the sample into a dual-purpose test useful for substantive testing.

B : Eliminate the need to use judgment in determining appropriate sample sizes.

C : Afford greater assurance than a nonstatistical sample of equal size.

D : Provide an objective basis for quantitatively evaluating sample risk.

Answer: D

Page: 1 / 206

Total 1026 Questions | Updated On: Oct 25, 2026

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