AICPA CPA-Auditing Exam - Topic 1 Question 67 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 67
Topic #: 1

Which of the following representations should not be included in a report on internal control related matters noted in an audit of a nonissuer?

ASignificant deficiencies related to internal control design exist, but none is deemed to be a material weakness.

BThere are no significant deficiencies in the design or operation of internal control.

CCorrective follow-up action is recommended due to the relative significance of material weaknesses discovered during the audit.

DThe auditor's consideration of internal control would not necessarily disclose all significant deficiencies that exist.

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. A report on internal control related matters noted in an audit should not state that there are no significant deficiencies in internal control, since this statement might erroneously imply that the auditor searched for such conditions.

Choice 'a' is incorrect. The auditor is permitted to state that no material weaknesses were identified during the audit. Typically this occurs in reports submitted to governmental authorities.

Choice 'c' is incorrect. The auditor may suggest that corrective follow-up action should be taken due to the relative significance of material weakness discovered.

Choice 'd' is incorrect. The auditor's report may state that his or her consideration of internal control would not necessarily disclose all significant deficiencies that exist.

by Renea at Mar 22, 2023, 09:34 AM

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Polly

4 months ago

C is definitely necessary for corrective actions!

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Brandon

4 months ago

Wait, how can there be no significant deficiencies? That seems off.

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Elenore

4 months ago

I think D is important too, but not sure if it belongs in the report.

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Deangelo

4 months ago

Totally agree, B should be included instead!

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Willow

4 months ago

A is about deficiencies, but not material weaknesses.

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Miles

5 months ago

I recall that option D discusses the auditor's limitations, which might be important to mention, but I wonder if it should be included in the report at all.

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Mireya

5 months ago

I practiced a similar question where the focus was on material weaknesses, and I feel like option C is definitely something that should be included in a report.

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Raul

5 months ago

I'm not entirely sure, but I remember something about how significant deficiencies should always be reported, so maybe option A is the right choice?

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Farrah

5 months ago

I think option B might be the one that shouldn't be included since it states there are no deficiencies, which seems too definitive for a report.

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Mike

5 months ago

This looks like a straightforward question about where to find agent performance data. I'll carefully review the options and think through what each one might contain.

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Cherelle

5 months ago

Ugh, I'm totally blanking on the right term for this. Is it "Blending"? Or maybe "Appending"? I need to review my database concepts before the exam.

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Merrilee

5 months ago

I'm pretty sure that Beyond Budgeting emphasizes adaptive management, so I think statement 2 is definitely a key concept.

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