AICPA CPA-Auditing Exam - Topic 1 Question 92 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 92
Topic #: 1

Which of the following statements concerning an auditor's communication of significant deficiencies identified during the audit of a nonissuer is correct?

AThe auditor should request a meeting with management one level above the source of the significant deficiencies to discuss suggestions for remedial action.

BAny report issued on significant deficiencies should indicate that providing assurance on internal control was not the purpose of the audit.

CSignificant deficiencies discovered and communicated at an interim date should be reexamined with tests of controls before completing the engagement.

DSuggestions concerning administration efficiencies and business strategies should not be communicated in the same report with significant deficiencies.

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. Any report issued on significant deficiencies should indicate that providing assurance on internal control was not the purpose of the audit.

Choice 'a' is incorrect. The auditor should communicate significant deficiencies to management and those charged with governance, but is not required to request a meeting with management one level above the source of the reportable conditions, to discuss suggestions for remedial action.

Choice 'c' is incorrect. Significant deficiencies discovered and communicated at an interim date do not need to be reexamined with tests of controls before completing the engagement.

Choice 'd' is incorrect. Suggestions concerning administration efficiencies and business strategies may be communicated in the same report with significant deficiencies (the significant deficiencies must be separately identified, however).

by Wenona at Jul 11, 2024, 04:37 PM

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Elouise

3 months ago

C makes sense, reexamining is crucial before wrapping things up.

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Gertude

3 months ago

A sounds right, but isn't it a bit awkward to meet with higher-ups?

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Martin

3 months ago

Wait, are we really not supposed to mix strategies with deficiencies?

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Patria

4 months ago

I disagree with D, seems like they could be related.

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Willodean

4 months ago

B is definitely correct, gotta clarify that assurance isn't the goal.

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Darnell

4 months ago

I recall that mixing suggestions for efficiencies with significant deficiencies might confuse the report, so option D could be a valid point.

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Van

4 months ago

I practiced a question similar to this, and I think significant deficiencies need to be reexamined, so option C could be correct.

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Desirae

4 months ago

I'm not entirely sure, but I feel like significant deficiencies should be discussed with management, which might relate to option A.

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Weldon

5 months ago

I think option B sounds familiar because I remember something about the purpose of the audit not being to provide assurance on internal controls.

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Han

5 months ago

This is a good test of my understanding of auditor communication requirements. I'm going to carefully read through each option and think about the specific guidance around significant deficiencies.

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Maryann

5 months ago

I've seen questions like this before, and the key is to really pay attention to the nuances in the answer choices. I think I know which one is correct, but I want to double-check my reasoning.

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Gracia

5 months ago

Okay, let me think this through step-by-step. The question is asking about the auditor's communication of significant deficiencies, so I need to focus on that specific requirement.

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Edmond

5 months ago

Hmm, I'm a little unsure about this one. The wording is a bit tricky, and I want to make sure I understand the key differences between the answer choices.

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Jules

5 months ago

This question seems pretty straightforward. I think I can eliminate a few of the options pretty quickly.

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Alita

5 months ago

Okay, let's see. I'm pretty sure it has to do with the user's profile and permissions. Maybe it checks if they're assigned to the right business unit or have the right API access. I'll make sure to read the options closely.

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Ludivina

5 months ago

Okay, the key here is to identify which node type can edit Python code to operate data in MaxCompute. I'll review the options and see which one fits that criteria.

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Antione

5 months ago

This looks like a straightforward Agile question. I'm pretty confident I know the answer - it's Tasks that are estimated in hours for the Sprint Backlog.

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Bobbie

5 months ago

The Blue Prism Database should be in there for sure, along with the Runtime Resource and the Application Server, if I'm remembering correctly!

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Dominga

2 years ago

Ooh, this is a tricky one. I'm going to have to go with C, just to be safe. Can't be too careful with those significant deficiencies, you know?

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King

2 years ago

Definitely, it's crucial to take the necessary steps to ensure accuracy and reliability in the audit process.

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Noah

2 years ago

I agree, it's better to be safe than sorry when it comes to addressing significant deficiencies.

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Brittni

2 years ago

I think C is a good choice. It's important to reexamine significant deficiencies with tests of controls.

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Sheron

2 years ago

I agree with Carmelina, A seems like the right choice for effective communication.

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Carmelina

2 years ago

But A makes sense because discussing suggestions for remedial action is important.

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Ciara

2 years ago

Haha, this question is a real head-scratcher. I'm just going to go with A and hope the auditor can work some magic with management!

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Carla

2 years ago

D is a bit strange. Why wouldn't the auditor communicate suggestions for business strategies along with significant deficiencies? Seems like valuable feedback.

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Annabelle

1 year ago

D) Suggestions concerning administration efficiencies and business strategies should not be communicated in the same report with significant deficiencies.

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Clare

1 year ago

C) Significant deficiencies discovered and communicated at an interim date should be reexamined with tests of controls before completing the engagement.

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Blair

1 year ago

B) Any report issued on significant deficiencies should indicate that providing assurance on internal control was not the purpose of the audit.

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Estrella

1 year ago

A) The auditor should request a meeting with management one level above the source of the significant deficiencies to discuss suggestions for remedial action.

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Craig

2 years ago

I disagree, I believe it's B.

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Carmelina

2 years ago

I think the correct statement is A.

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Denny

2 years ago

C seems like the right choice to me. The auditor should reexamine any significant deficiencies found at an interim date before completing the engagement.

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Sheridan

2 years ago

I think B is the correct answer. The auditor should make it clear that the audit's purpose was not to provide assurance on internal control.

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Sherly

2 years ago

D) Suggestions concerning administration efficiencies and business strategies should not be communicated in the same report with significant deficiencies.

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Shannon

2 years ago

C) Significant deficiencies discovered and communicated at an interim date should be reexamined with tests of controls before completing the engagement.

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Tamala

2 years ago

B) Any report issued on significant deficiencies should indicate that providing assurance on internal control was not the purpose of the audit.

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Dahlia

2 years ago

A) The auditor should request a meeting with management one level above the source of the significant deficiencies to discuss suggestions for remedial action.

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