AICPA Exam CPA-Auditing Topic 2 Question 35 Discussion

Choice 'b' is correct. Per Government Auditing Standards, audit documentation should contain sufficient information so that supplementary oral Explanation: s are not required.

Choice 'a' is incorrect. The auditor should obtain written representation from management acknowledging responsibility for 'violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency.'

Choice 'c' is incorrect. The auditor should document procedures performed to evaluate compliance with laws and regulations that have a direct and material effect on the determination of financial statement amounts.

Choice 'd' is incorrect. There is no such requirement that audit documentation contain this caveat.