Discuss AICPA CPA-Auditing Exam Topic 1 Question 61

Which of the following statements describes an auditor's obligation to identify deficiencies in the design or operation of internal control?

AThe auditor should design and apply tests of controls to discover significant deficiencies in internal control that could result in material misstatements.

BThe auditor need not search for significant deficiencies in internal control unless management requests an attestation that 'no significant deficiencies in internal control were noted in the audit.'

CThe auditor should search for significant deficiencies in internal control if the auditor expects that controls are operating effectively (i.e., if the auditor plans to rely on controls).

DThe auditor need not search for significant deficiencies in internal control but should document and communicate any such deficiencies that are discovered.

Suggested Answer: D

Choice 'd' is correct. The auditor need not search for significant deficiencies in internal control, but should document and communicate any such deficiencies that are discovered.

Choice 'a' is incorrect. Tests of controls are designed and applied to evaluate the risk of financial statement misstatement, and to determine the nature, timing, and extent of substantive tests to be performed. They are not designed to discover significant deficiencies in internal control.

Choice 'b' is incorrect. Searching for significant deficiencies in internal control is not part of an audit, and it would be inappropriate for the auditor to state that no significant deficiencies in internal control were noted (even if management requested such a statement).

Choice 'c' is incorrect. Searching for significant deficiencies in internal control is not part of an audit even if the auditor expects that controls are operating effectively (i.e., expects to rely on controls).

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12 comments · newest first

Lelia 11 months ago

B is incorrect; auditors should always be on the lookout for deficiencies.

Sheridan 11 months ago

D is misleading. They should actively search, not just document what they find.

Ernie 12 months ago

Wait, so auditors don’t have to look for deficiencies unless asked? Sounds off.

Kenneth 12 months ago

I think C makes more sense. If controls are effective, why not check?

Marjory 12 months ago

A is definitely the right choice! Auditors need to test controls.

Elsa 1 year ago

I recall that even if deficiencies are found, auditors still need to document them. So, option D might be partially correct, but I think they have a responsibility to search for them too.

Rashad 1 year ago

I think I read somewhere that auditors don't have to search for deficiencies unless specifically asked by management. That makes me lean towards option B, but I'm not completely confident.

Dion 1 year ago

I'm not entirely sure, but I feel like option A sounds familiar. It seems like auditors should actively test controls to find any significant deficiencies.

Dino 1 year ago

I remember we discussed how auditors are required to identify deficiencies, especially if they plan to rely on controls. So, I think option C might be correct.

Nada 1 year ago

Okay, I've got a few ideas here. The device-awareness feature could help developers build apps that work well on both mobile and desktop, which would save time compared to building separate versions. And the version control and change history could make it easier to collaborate and iterate on the codebase. I'm leaning towards C or D, but I'll need to think it through a bit more.

Gerri 1 year ago

I'm feeling pretty confident about this one. The way I see it, tasks become steps when they're automated, and processes are just collections of tasks or steps.

Stephaine 1 year ago

Okay, let's think this through. I'm guessing the rapid elasticity and resource pooling of cloud computing would be really helpful for DevOps, since it allows you to quickly scale resources as needed. And the script-based nature of cloud environments could make automation a lot easier.

AICPA CPA-Auditing Exam - Topic 1 Question 61 Discussion