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AICPA Exam CPA-Auditing Topic 2 Question 102 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 102
Topic #: 2
[All CPA-Auditing Questions]

Which of the following statements concerning an auditor's communication of significant deficiencies identified during the audit of a nonissuer is correct?

Show Suggested Answer Hide Answer
Suggested Answer: B

Choice 'b' is correct. Any report issued on significant deficiencies should indicate that providing assurance on internal control was not the purpose of the audit.

Choice 'a' is incorrect. The auditor should communicate significant deficiencies to management and those charged with governance, but is not required to request a meeting with management one level above the source of the reportable conditions, to discuss suggestions for remedial action.

Choice 'c' is incorrect. Significant deficiencies discovered and communicated at an interim date do not need to be reexamined with tests of controls before completing the engagement.

Choice 'd' is incorrect. Suggestions concerning administration efficiencies and business strategies may be communicated in the same report with significant deficiencies (the significant deficiencies must be separately identified, however).


by Amber at Oct 18, 2024, 10:36 PM

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Krissy
3 months ago
Gotta love option B - it's like the auditor is saying, 'Hey, we weren't even looking for this, but you've got some serious issues here!'
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Jules
2 months ago
User 3: Definitely, it helps manage expectations for the stakeholders.
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Blossom
3 months ago
User 2: Yeah, it's important to clarify the purpose of the audit in the report.
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Glenna
3 months ago
User 1: Option B is interesting, it's like a disclaimer for the audit.
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Anastacia
3 months ago
Haha, option D is a classic - auditors should definitely avoid mixing business advice with control deficiencies!
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Jame
2 months ago
User 4: I think option D makes a lot of sense in maintaining clarity in the audit report.
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Gracia
2 months ago
User 3: It's important to keep the focus on internal controls when communicating deficiencies.
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Jess
3 months ago
User 2: Definitely, mixing business advice could create confusion.
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Sherly
3 months ago
User 1: I agree, auditors should stick to reporting deficiencies only.
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Jovita
4 months ago
I'm going with option A. It's important for the auditor to communicate directly with someone higher up to ensure the issues are addressed.
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Lavina
4 months ago
Option C sounds good to me. Significant deficiencies need to be re-examined before the audit is completed.
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Vanna
3 months ago
User 3: I think it's crucial to address any issues before finalizing the audit report.
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Dahlia
3 months ago
User 2: Definitely, it's important to make sure everything is thoroughly reviewed.
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Stefany
3 months ago
User 1: I agree, significant deficiencies should be re-examined before completing the audit.
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Major
4 months ago
I disagree, I believe the correct answer is B.
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Herman
4 months ago
I think the correct answer is A.
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Doug
4 months ago
I think option B is the correct answer. The auditor should make it clear that the audit wasn't focused on internal control assurance.
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Pearlie
3 months ago
That's true, it's crucial for the auditor to communicate effectively with management.
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Willow
3 months ago
I think option A is also important, to discuss suggestions for remedial action with management.
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Tambra
3 months ago
It's important for the auditor to clarify the purpose of the audit in the report.
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Alida
4 months ago
I agree with you, option B is the correct answer.
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