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AICPA Exam CPA-Auditing Topic 1 Question 44 Discussion

Actual exam question for AICPA's CPA Auditing and Attestation exam
Question #: 44
Topic #: 1
[All CPA Auditing and Attestation Questions]

When auditing an entity's financial statements in accordance with Government Auditing Standards (the Yellow Book), an auditor is required to report on:

i. Recommendations for actions to improve operations.

ii. The scope of the auditor's tests of compliance with laws and regulations.

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Suggested Answer: B

Choice 'b' is correct. When auditing an entity's financial statements in accordance with Government Auditing Standards, an auditor is required to report on the scope of the auditor's testing of compliance with laws and regulations, but not on recommendations for actions to improve operations.

Choices 'a', 'c', and 'd' are incorrect based on the above Explanation: .


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