AICPA Exam CPA-Auditing Topic 2 Question 68 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 68
Topic #: 2

When engaged to express an opinion on a nonissuer's internal control, an accountant should:

AObtain management's written assertions regarding whether the company has maintained effective internal control.

BQualify any opinion concerning management's assertion that the cost of correcting any weaknesses exceeds the benefits.

CKeep informed of events subsequent to the date of the report that might have affected the accountant's opinion.

DDisclaim an opinion on whether the system taken as a whole is sufficient to prevent or detect material errors or irregularities.

Show Suggested Answer

Suggested Answer: A

Choice 'a' is correct. An auditor should obtain management's written assertion about the effectiveness of the entity's internal control.

Choice 'b' is incorrect. The accountant should disclaim (not qualify) an opinion on management's assertions that the cost of correcting weaknesses exceeds the benefits.

Choice 'c' is incorrect. The accountant has no responsibility to evaluate the effect of subsequent events. In fact, the report on an entity's internal control specifically states that projections of the internal control evaluation to future periods is inappropriate.

Choice 'd' is incorrect. The accountant does provide an opinion (and not a disclaimer) on the effective operation of internal control.

by Bernardine at Apr 03, 2023, 03:56 PM

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