Discuss AICPA CPA-Auditing Exam Topic 2 Question 47

An audit performed in accordance with OMB Circular A-133 will expand the auditor's responsibilities beyond generally accepted auditing standards. The auditor's expanded responsibilities include:

APerformance of additional procedures to test and report on compliance with laws, rules, regulations and provisions of contracts or grant agreements that have any effect on federal award programs.

BPerformance of additional procedures to test for noncompliance with laws, rules and regulations targeted for review by the Office of the Inspector General.

CPerformance of additional procedures to test and report on compliance with laws, rules, regulations and provisions of contracts or grant agreements that have a direct and material effect on major federal award programs.

DPerformance of additional procedures to test and report on achievement of program objectives.

Suggested Answer: C

Choice 'c' is correct. OMB Circular A-133 expands the auditor's responsibilities to include procedures designed to test and report on compliance matters having a direct and material effect on major federal award programs.

Choice 'a' is incorrect. OMB Circular A-133 expands procedures to major programs as defined by the Circular, not to all programs.

Choice 'b' is incorrect. OMB Circular A-133 audit objectives relate to management's assertions regarding compliance with laws, rules, and regulations, not to noncompliance issues identified by the Office of the Inspector General.

Choice 'd' is incorrect. OMB Circular A-133 relates to the financial and compliance audits of major federal financial assistance programs, not to the achievement of program objectives.

Get Premium CPA-Auditing Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

8 comments · newest first

Mozell 11 months ago

B seems too focused; I prefer the broader scope of C.

Earnestine 12 months ago

Totally agree, compliance testing is key for federal programs!

Oneida 12 months ago

Wait, are auditors really expected to do all that? Sounds like a lot!

Audry 12 months ago

I think C is the most critical part of the audit.

Charlene 1 year ago

A-133 definitely adds more layers to the auditor's role.

Jenelle 1 year ago

Okay, I've got a strategy for this. I'll go through each option and ask myself if it's a recommended NIACAP certification level. That should help me identify the correct answers.

Blondell 1 year ago

Wait, I'm confused. Isn't the whole point of control self-assessment that the work teams are responsible for evaluating the risks and controls, rather than auditors? I better re-read the question carefully.

Viva 1 year ago

This looks like a pretty straightforward MPLS configuration question. I think the key is to identify the missing step to enable LDP.

AICPA CPA-Auditing Exam - Topic 2 Question 47 Discussion