IIA Exam CPEA Topic 1 Question 90 Discussion

Actual exam question for IIA's CPEA exam

Question #: 90
Topic #: 1

While considering internal control system of an entity, the auditor is basically concerned that the system provides reasonable assurance about which one of the following?

AThat the management cannot override the system

BOperational efficiency has been achieved according to management plans

CErrors have been prevented or detected

DControls have not been circumvented by collusion

Show Suggested Answer

Suggested Answer: C

by Willow at Sep 19, 2024, 06:12 AM

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Dorethea

23 days ago

I'm going with C. Seems like the most comprehensive answer to me. Gotta love those multi-choice exams where you can just use process of elimination!

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Aliza

5 days ago

User1: I think C is the correct answer too. It covers a lot of ground.

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Art

24 days ago

Haha, A is a good one! As if management would ever let a system prevent them from overriding it. That's just wishful thinking.

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Erick

27 days ago

D is an interesting option, but I doubt the auditor would be primarily focused on collusion. That's a bit too specific, in my opinion.

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Tasia

1 months ago

B sounds good, but I think the auditor is more concerned with the integrity of the system itself, not just its operational efficiency.

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Hyun

7 days ago

D) Controls have not been circumvented by collusion

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Carline

14 days ago

C) Errors have been prevented or detected

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Mendy

15 days ago

A) That the management cannot override the system

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Leslee

1 months ago

I believe the answer is C) Errors have been prevented or detected because that's crucial for the reliability of financial statements.

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Fidelia

1 months ago

Definitely C. Errors should be prevented or detected, that's the whole point of internal controls!

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Alaine

1 days ago

C) Errors have been prevented or detected

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Kenia

2 days ago

B) Operational efficiency has been achieved according to management plans

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Roxane

4 days ago

A) That the management cannot override the system

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Lorrie

16 days ago

C) Errors have been prevented or detected

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Kris

1 months ago

B) Operational efficiency has been achieved according to management plans

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Van

1 months ago

A) That the management cannot override the system

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Isaiah

2 months ago

I agree with Nelida. It's important for the internal control system to catch errors.

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Nelida

2 months ago

I think the auditor is concerned about errors being prevented or detected.

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