Abstract The article presents questions and answers of the auditing section of the November 1961 Uniform C.P.A. Examination, which was given November 9, 1961 from 8:30 to 12:00 noon and consisted of seven questions, all required. The suggested time allotments were as follows: Problem 1:20 minutes; Problem 2: 15 minutes; Problem 3: 20 minutes; Problem 4: 25 minutes; Problem 5: 25 minutes; Problem 6: 25 minutes and Problem 6: 35 minutes. First problem was that a client, without consulting its CPA, has changed its accounting so that it is not in accordance with generally accepted accounting principles. During the regular audit engagement the CPA discovers that the statements based on the accounts are so grossly misleading that they might be considered fraudulent. It was asked to discuss the specific action to be taken by the CPA. In response to this question, it was suggested that the first step by the CPA should be to discuss with the client the fact that the changes in accounting made during the year are not in accordance with generally accepted accounting principles. The CPA's objective in this discussion should be to persuade the client to discontinue the unsatisfactory practices and to make such changes as are necessary to permit a fair presentation in the financial statements. If the client will not agree to such revisions the CPA should withdraw from the engagement, since he certainly does not want his name to be associated in any manner with financial statements which are so grossly misleading that they might be considered fraudulent.

Reviews the book "Cost Accounting."