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AICPA Exam CPA-Auditing Topic 1 Question 87 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 87
Topic #: 1
[All CPA-Auditing Questions]

Which of the following procedures should an auditor generally perform regarding subsequent events?

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Suggested Answer: A

Choice 'a' is correct. An auditor's communication of internal control related matters noted in an audit usually should be addressed to management and those charged with governance.

Choices 'b', 'c', and 'd' are incorrect. The director of internal auditing, the chief financial officer, and the chief accounting officer all would have access to the letter; however, it would not be addressed to them since they do not have the same level of authority and responsibility to the shareholders as management and those charged with governance.


by Barrie at May 10, 2024, 03:45 PM

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Elke
14 days ago
Subsequent events? More like 'subsequent shenanigans,' am I right? Better have those bank statements on lockdown, folks!
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Kara
19 days ago
Hmm, Option C is interesting, but it's more about communicating control weaknesses, not subsequent events. Gotta keep our eye on the ball here, folks.
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Wynell
1 months ago
Hold up, why are we even considering Option B? That's more for the confirmation process, not subsequent events. This is a no-brainer - Option D all the way!
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Sherell
3 days ago
Yeah, Option D makes the most sense for subsequent events. It's all about reviewing those bank statements.
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Tanesha
15 days ago
I agree, Option B seems out of place here. Option D is definitely the way to go.
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Mary
22 days ago
I agree, Option B seems out of place here. Option D is definitely the way to go.
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Glenna
1 months ago
I'm not sure about that. Comparing the latest interim financial statements with the audited ones (Option A) seems like a more comprehensive approach to subsequent events.
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Timmy
11 hours ago
Yeah, that way we can see if there are any significant changes that need to be addressed.
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Janine
28 days ago
I think comparing the latest interim financial statements with the audited ones is a good idea.
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Nobuko
2 months ago
Option D seems like the obvious choice here. Reviewing the cut-off bank statements is crucial for identifying any subsequent events that could impact the financial statements.
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Quentin
15 days ago
User 2: Definitely, it's a key procedure to ensure the financial statements are accurate.
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Maile
1 months ago
User 1: I agree, reviewing the cut-off bank statements is important for catching any new events.
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Salley
2 months ago
I believe reviewing the cut-off bank statements for several months after the year-end is also crucial to detect any potential errors or fraud.
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Meghan
2 months ago
I agree with Kathryn. It's important to ensure consistency and accuracy in the financial statements.
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Kathryn
2 months ago
I think the auditor should compare the latest available interim financial statements with the financial statements being audited.
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