CPA LEVEL I Auditing & Attestation(AUD) PRACTICE EXAM Q & A 2026 (Complete And Verified Study material) (23pages) LEARNEXAMS

1. Which of the following is an example of an attestation

engagement?

A) A review of a company's financial statements by an

independent auditor

B) A compilation of a company's financial statements by a

bookkeeper

C) A preparation of a company's tax return by a CPA

D) A valuation of a company's assets by an appraiser

Answer: A. An attestation engagement is one in which a

practitioner expresses a conclusion about the reliability of a

subject matter or an assertion that is the responsibility of

another party. A review of financial statements is an

attestation engagement, while the other options are not.

2. What is the difference between a positive and a negative

assurance in an attestation report?

A) A positive assurance states that the subject matter or

assertion is fairly presented, while a negative assurance

states that nothing came to the practitioner's attention that

causes them to believe otherwise.

B) A positive assurance states that the practitioner

performed sufficient procedures to obtain reasonable

assurance, while a negative assurance states that the

practitioner performed limited procedures to obtain

moderate assurance.

C) A positive assurance states that the practitioner is

responsible for the subject matter or assertion, while a

negative assurance states that the responsibility lies with