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AICPA Exam CPA-Auditing Topic 1 Question 51 Discussion
Topic #: 1
The auditor's report on internal controls and compliance with laws and regulations in accordance with Government Auditing Standards (the Yellow Book), is required to include:
i. The scope of the auditor's testing of internal controls.
ii. Uncorrected misstatements that were determined by management to be immaterial.
Choice 'a' is correct. The scope of the auditor's testing of internal controls is required to be included in the auditor's report on internal controls and compliance with laws and regulations in accordance with Government Auditing Standards (the Yellow Book).
Choices 'b' and 'c' are incorrect. Immaterial uncorrected misstatements are not included in the auditor's report on internal controls and compliance with laws and regulations.
Choice 'd' is incorrect. The scope of the auditor's testing of internal controls is required to be included in the auditor's report on internal controls and compliance with laws and regulations in accordance with Government Auditing Standards (the Yellow Book).
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