Free Preparation Discussions
MENU
AICPA Exam CPA-Auditing Topic 3 Question 98 Discussion
Topic #: 3
With respect to the audit of a nonissuer, significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's management and those charged with governance because they represent:
Choice 'd' is correct. Significant deficiencies in the design or operation of internal control should be communicated to management and those charged with governance because there is more than a remote likelihood that they will result in a financial statement misstatement that is more than inconsequential.
Choice 'a' is incorrect. Manipulation or falsification of accounting records may not represent an internal control deficiency (e.g., if such fraud occurs through collusion).
Choice 'b' is incorrect. Information indicative of a going concern problem is not an internal control deficiency.
Choice 'c' is incorrect. Irregularities or illegal acts may not represent deficiencies in internal control (e.g., if such acts occur through collusion).
Francine
2 months agoChantell
1 months agoKina
2 months agoHildred
2 months agoMitzie
2 months agoTitus
2 months agoJonell
2 months agoMarcos
2 months agoVincent
2 months agoTeddy
3 months agoFlo
2 months agoAyesha
2 months agoLeandro
2 months agoEmiko
3 months agoLashawn
3 months agoStacey
3 months agoJolanda
2 months agoErasmo
2 months agoDaniel
2 months agoGlory
2 months agoMelita
3 months agoFlorencia
3 months ago