Online Access Free CPEA Exam Questions

A business incurring costs for rent accrued at a balance sheet date on space the business occupies should most properly list the rent cost on the business's balance sheet as which one of the following?

• A.current assets
• B.deferred income
• C.prepaid expenses
• D.current liabilities

Any audit program must have some bounds under which it operates. Someone must decide which facilities are audited, what they are audited against, and what type of audits will be conducted. In general, audit programs will be responsible for auditing the facility types, for instance:

• A.Real estate owned
• B.Warehouses and distribution centers on rent
• C.Joint ventures with majority ownership and operational responsibility
• D.A and C both

The European Community Eco-Management and Audit Scheme (EMAS) participation requires:

• A.An environmental policy must be adopted consistent with requirements listed in the EMAS regulations
• B.The company should conduct an initial site review
• C.An environmental statement must be prepared monthly
• D.The environmental statement must be verified by an independent third party that was not involved in the audit

The assessment audit when compared to a full scope audit:

• A.Indicates the use of military standards
• B.Tends to be less in-depth
• C.Is almost always an internal audit
• D.Is conducted during the execution phase of the contract

Engagement letters are:

• A.Required by the SEC for all publicly-held clients
• B.Not required by audit standards
• C.Used to notify the client about which type of audit opinion will be rendered
• D.Required by audit standards