Practice Test Geeks(ABA) Accredited Business Accountant Practice Test
← All ABA Flashcard Decks

Audit & Attestation Services Flashcards

7 cards from real ABA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Audit & Attestation Services flashcards as text

  1. Which type of audit opinion is issued when financial statements are presented fairly in all material respects in accordance with GAAP?

    Answer: Unmodified opinion

    An unmodified (clean) opinion means the auditor found no material misstatements and the statements conform to GAAP.

  2. An auditor discovers that the client's management has intentionally misstated inventory values. This situation most likely requires the auditor to:

    Answer: Withdraw from the engagement

    Intentional misstatement by management (fraud) impairs the auditor-client relationship and typically requires withdrawal from the engagement.

  3. Under attestation standards, a practitioner performing an agreed-upon procedures engagement reports findings to:

    Answer: Specified parties who agreed to the procedures

    Agreed-upon procedures reports are restricted to the specified parties who agreed to and are responsible for the sufficiency of the procedures.

  4. Which sampling method gives every item in the population an equal chance of being selected?

    Answer: Simple random sampling

    Simple random sampling ensures each item has an equal and independent probability of selection, making it statistically representative.

  5. Analytical procedures used during the planning phase of an audit are primarily intended to:

    Answer: Identify unusual relationships that may indicate risk areas

    Planning-stage analytical procedures help identify areas with higher risk of misstatement so the auditor can allocate resources effectively.

  6. Which of the following best describes 'audit risk'?

    Answer: The risk that a material misstatement exists and the auditor fails to detect it

    Audit risk is the risk that the auditor expresses an inappropriate opinion when financial statements are materially misstated.

  7. When an auditor lacks independence, what report should be issued for a compilation engagement?

    Answer: A compilation report with a paragraph disclosing the lack of independence

    SSARS allows a compilation report to be issued when the accountant lacks independence, provided the lack of independence is disclosed in the report.