AICPA Exam CPA-Auditing Topic 3 Question 37 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 37
Topic #: 3

For an entity that does financial statements generally would not refer to:

ASignificant estimates made by management.

BAn assessment of the entity's accounting principles.

CManagement's responsibility for the financial statements.

DThe entity's internal control.

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. The auditor's standard report does not refer to the entity's internal control.

Choice 'a' is incorrect. The auditor's standard report refers to 'significant estimates made by management' in the scope paragraph.

Choice 'b' is incorrect. The auditor's standard report refers to 'assessments of the entity's accounting principles' in the scope paragraph.

Choice 'c' is incorrect. The auditor's standard report states management's responsibility for the financial statements in the introductory paragraph.

by Cecil at May 07, 2022, 06:53 PM

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