AUD CPA COMPREHENSIVE EXAM 2026
COMPLETE QUESTIONS AND 100%
CORRECT SOLUTIONS
◉ The major reason that the difference and ratio estimation methods are
expected to produce audit efficiency is that the .Answer: Variability of
the populations of differences or ratios is less than that of the
populations of carrying amounts or audited values
◉ An auditor established a $60,000 tolerable misstatement for an asset
with an account balance of $1,000,000. The auditor selected a sample of
every twentieth item from the population that represented the asset
account balance and discovered overstatements of $3,700 and
understatements of $200. Under these circumstances, the auditor most
likely would conclude that .Answer: There is an unacceptably high risk
that the actual misstatements in the population exceed the tolerable
misstatement because the total projected misstatement is more than the
tolerable misstatement
◉ According to the Sarbanes-Oxley Act of 2002, which of the following
non-audit services can be provided by a registered public accounting
firm to the client contemporaneously with the audit when preapproval is
granted by audit committee action .Answer: tax services
,◉ If the size of the sample to be used in a particular test of attributes has
not been determined by using statistical concepts, but the sample has
been chosen in accordance with random selection procedures, .Answer:
The auditor may or may not achieve desired precision at the desired
level of confidence
◉ Using statistical sampling to assist in verifying the year-end accounts
payable balance, an auditor has accumulated the following data:
Balance
Number of
Book
Determined by
Accounts
Balance
the Auditor
Population
4,100
$5,000,000
?
Sample
200
$ 250,000
$300,000
, Using the ratio estimation technique, the auditor's estimate of the year-
end accounts payable balance would be .Answer: $6,000,000
◉ As a result of tests of controls, an auditor overrelied on controls and
decreased substantive testing. This assessment occurred because the true
deviation rate in the population was .Answer: More than the deviation
rate in the auditor's sample
◉ Assume that an auditor estimates that 10,000 checks were issued
during the accounting period. If a computer application control that
performs a limit check for each check request is to be subjected to the
auditor's test-data approach, the sample should include .Answer: one
transaction
◉ When assessing the tolerable population deviation rate, the auditor
should consider that, although control deviations increase the risks of
material misstatement, such deviations do not necessarily result in
misstatements. This consideration explains why .Answer: A recorded
disbursement that does not show evidence of required approval may
nevertheless be a transaction that is properly authorized and recorded
◉ The diagram below depicts the auditor's estimated maximum
deviation rate compared with the tolerable deviation rate and also
depicts the true population deviation rate compared with the tolerable
deviation rate.True State of Population
Auditor's Estimate Based on Sample Results
COMPLETE QUESTIONS AND 100%
CORRECT SOLUTIONS
◉ The major reason that the difference and ratio estimation methods are
expected to produce audit efficiency is that the .Answer: Variability of
the populations of differences or ratios is less than that of the
populations of carrying amounts or audited values
◉ An auditor established a $60,000 tolerable misstatement for an asset
with an account balance of $1,000,000. The auditor selected a sample of
every twentieth item from the population that represented the asset
account balance and discovered overstatements of $3,700 and
understatements of $200. Under these circumstances, the auditor most
likely would conclude that .Answer: There is an unacceptably high risk
that the actual misstatements in the population exceed the tolerable
misstatement because the total projected misstatement is more than the
tolerable misstatement
◉ According to the Sarbanes-Oxley Act of 2002, which of the following
non-audit services can be provided by a registered public accounting
firm to the client contemporaneously with the audit when preapproval is
granted by audit committee action .Answer: tax services
,◉ If the size of the sample to be used in a particular test of attributes has
not been determined by using statistical concepts, but the sample has
been chosen in accordance with random selection procedures, .Answer:
The auditor may or may not achieve desired precision at the desired
level of confidence
◉ Using statistical sampling to assist in verifying the year-end accounts
payable balance, an auditor has accumulated the following data:
Balance
Number of
Book
Determined by
Accounts
Balance
the Auditor
Population
4,100
$5,000,000
?
Sample
200
$ 250,000
$300,000
, Using the ratio estimation technique, the auditor's estimate of the year-
end accounts payable balance would be .Answer: $6,000,000
◉ As a result of tests of controls, an auditor overrelied on controls and
decreased substantive testing. This assessment occurred because the true
deviation rate in the population was .Answer: More than the deviation
rate in the auditor's sample
◉ Assume that an auditor estimates that 10,000 checks were issued
during the accounting period. If a computer application control that
performs a limit check for each check request is to be subjected to the
auditor's test-data approach, the sample should include .Answer: one
transaction
◉ When assessing the tolerable population deviation rate, the auditor
should consider that, although control deviations increase the risks of
material misstatement, such deviations do not necessarily result in
misstatements. This consideration explains why .Answer: A recorded
disbursement that does not show evidence of required approval may
nevertheless be a transaction that is properly authorized and recorded
◉ The diagram below depicts the auditor's estimated maximum
deviation rate compared with the tolerable deviation rate and also
depicts the true population deviation rate compared with the tolerable
deviation rate.True State of Population
Auditor's Estimate Based on Sample Results
