AICPA CPA-Auditing Exam - Topic 1 Question 16 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 16
Topic #: 1

[All CPA-Auditing Questions]

During consideration of internal control in a financial statement audit, an auditor is not obligated to:

ASearch for all significant deficiencies in the operation of internal control.

BUnderstand the internal control environment and the accounting system.

CDetermine whether the control activities relevant to audit planning have been implemented.

DPerform procedures to understand the design of internal control.

Show Suggested Answer

Suggested Answer: A

Choice 'a' is correct. During consideration of internal control in a financial statement audit, an auditor is not obligated to search for all significant deficiencies in the operation of internal control, but should communicate any such situations noted to management and those charged with governance.

Choice 'b' is incorrect. The auditor is required to obtain an understanding of each of the five components of internal control, including the control environment and the (accounting) information system.

Choices 'c' and 'd' are incorrect. As part of planning, the auditor is required to obtain an understanding of the design of relevant controls and to determine whether they have been implemented.

by Carmen at May 04, 2022, 10:35 AM

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5 months ago

This is a good one to practice. I'm going to review the steps a few times to make sure I have them committed to memory. Can't afford to mess this up on the exam.

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