Discuss AICPA CPA-Auditing Exam Topic 2 Question 56

When engaged to express an opinion on a nonissuer's internal control, an accountant should:

AObtain management's written assertions regarding whether the company has maintained effective internal control.

BQualify any opinion concerning management's assertion that the cost of correcting any weaknesses exceeds the benefits.

CKeep informed of events subsequent to the date of the report that might have affected the accountant's opinion.

DDisclaim an opinion on whether the system taken as a whole is sufficient to prevent or detect material errors or irregularities.

Suggested Answer: A

Choice 'a' is correct. An auditor should obtain management's written assertion about the effectiveness of the entity's internal control.

Choice 'b' is incorrect. The accountant should disclaim (not qualify) an opinion on management's assertions that the cost of correcting weaknesses exceeds the benefits.

Choice 'c' is incorrect. The accountant has no responsibility to evaluate the effect of subsequent events. In fact, the report on an entity's internal control specifically states that projections of the internal control evaluation to future periods is inappropriate.

Choice 'd' is incorrect. The accountant does provide an opinion (and not a disclaimer) on the effective operation of internal control.

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14 comments · newest first

Lai 11 months ago

B makes sense too, but it feels like a gray area.

Berry 11 months ago

Wait, are we really just taking management's word for it? Sounds risky.

Jerrod 12 months ago

D seems a bit extreme. Shouldn't we at least evaluate the system?

Bernadine 12 months ago

I think C is just as important. Events can change everything!

Lindsey 12 months ago

A is definitely the right move! Management's assertions are key.

Lizbeth 1 year ago

I think option D sounds familiar, but I wonder if we really should disclaim an opinion on the overall system. It feels like there might be more to it.

Jolanda 1 year ago

I'm a bit confused about whether we should qualify opinions on management's assertions. I remember discussing it, but I can't recall the specifics.

Adell 1 year ago

I feel like I saw a similar question about internal controls in our practice exams, and I think option C might be relevant since we need to stay updated on events after the report date.

Judy 1 year ago

I think I remember that obtaining management's written assertions is important, but I'm not entirely sure if that's the only thing we need to do.

Lonna 1 year ago

I'm a bit confused on this one. Is it the Gateway Insight page or the Security Insight page that tracks those metrics?

Vivan 1 year ago

I'm pretty sure ROP stands for Return-Oriented Programming, which is a technique used in computer security. I remember learning about it in class, so I'm confident this is the right answer.

Barney 1 year ago

Sending out documentation to align expectations seems like a reasonable approach, but I worry that it might not be enough to fully address the underlying compliance issues. Might need to dig deeper.

Dalene 1 year ago

Hmm, this looks tricky. I'll need to carefully read through the configuration details to understand how the server decides which store to use.

Willard 1 year ago

Hmm, I'm a bit unsure about this one. The requirements seem pretty specific, and I'm not sure which solution would be the best fit. I might need to review the details of each option more carefully before deciding.

AICPA CPA-Auditing Exam - Topic 2 Question 56 Discussion