In the Auditing and Attestation Section of the CPA Exam,candidates

question 42

Multiple Choice

In the Auditing and Attestation section of the CPA exam,candidates are expected to demonstrate knowledge and understanding of the professional standards and the skill to apply that knowledge to performing auditing tasks.Some of the tasks that candidates are expected to perform are

• A)differentiate between audits,tax,and compilation services
• B)differentiate between the accounting standards for issuers and nonissuers
• C)identify situations that might be unethical or a violation of professional standards,perform research and consultations as appropriate,and determine the appropriate action
• D)recognize potentially unethical behavior of clients and determine the impact on the services performed
• E)demonstrate the importance of identifying and following requirements,rules,and standards that are established by the AICPA
• F)both A and B
• G)both C and D
• H)both D and E

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Definitions:

Functional Departmentation

Organizing an entity's structure based on different functions such as marketing, finance, and operations to improve efficiency.

Large Firms

Large Firms refers to corporations or businesses that operate on a significant scale, characterized by a vast number of employees, large market share, or high revenue.

Geographic Departmentation

Relatively self-contained units deliver an organization’s products or services in a specific geographic territory.

Multiple Geographic Regions

Refers to the operations or presence of a business, organization, or entity across various distinct physical locations or areas around the world.