AICPA Exam CPA-Auditing Topic 2 Question 82 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 82
Topic #: 2

In obtaining an understanding of an entity's internal control in a financial statement audit, an auditor is not obligated to:

ADetermine whether the control activities have been implemented.

BPerform procedures to understand the design of internal control.

CDocument the understanding of the entity's internal control components.

DSearch for significant deficiencies in the operation of internal control.

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. When obtaining an understanding of an entity's internal control in a financial statement audit, an auditor is not obligated to search for significant deficiencies in the operation of internal control.

Choice 'a' is incorrect. In order to determine the nature, timing and extent of tests to be performed, an auditor must determine whether the control activities have been implemented.

Choice 'b' is incorrect. An auditor is required to perform procedures to confirm his/her understanding of the internal control systems' design, and to determine whether relevant controls have been implemented.

Choice 'c' is incorrect. An auditor is required to document his or her understanding of the entity's internal control components, even if he or she intends to use a substantive approach.

by Youlanda at Mar 10, 2024, 03:18 AM

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7 months ago

I think the answer is A. The auditor is not obligated to determine whether the control activities have been implemented.

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