Saturday, April 20, 2013


This is a very good resource for CPA  exam facts!  At http://www.examfacts.com they have an excellent study guide filled with basic exam facts for the CPA exam.  The book is also available at Amazon.com


Example Questions from the Exam Fact CPA Book:

Define what engagements do auditors not have to be independent for?
Compilations

Taxes

Consultations


Independence should be maintained in what?
both fact and appearance.

No direct financial interest, no MATERIAL indirect financial interest


Define Examples of when auditors are not independent
- more than 1 year of audit fees outstanding

- Material loan/lease unless from client in lending business and fully secured

- Material litigation involving credibility of accountant or management

- Accepts more than just a token gift

- spouse/sibling employed as client's internal auditor

- Final responsibility for journal entries (don't take role of management)


Define Professional care standard
GENERAL STANDARD 3

critical review of judgment at every level

skill and care of a prudent CPA

complete work papers

due diligence

professional skepticism