AICPA CPA-Auditing Exam - Topic 2 Question 6 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 6
Topic #: 2

In obtaining an understanding of an entity's internal control in a financial statement audit, an auditor is not obligated to:

ADetermine whether the control activities have been implemented.

BPerform procedures to understand the design of internal control.

CDocument the understanding of the entity's internal control components.

DSearch for significant deficiencies in the operation of internal control.

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. When obtaining an understanding of an entity's internal control in a financial statement audit, an auditor is not obligated to search for significant deficiencies in the operation of internal control.

Choice 'a' is incorrect. In order to determine the nature, timing and extent of tests to be performed, an auditor must determine whether the control activities have been implemented.

Choice 'b' is incorrect. An auditor is required to perform procedures to confirm his/her understanding of the internal control systems' design, and to determine whether relevant controls have been implemented.

Choice 'c' is incorrect. An auditor is required to document his or her understanding of the entity's internal control components, even if he or she intends to use a substantive approach.

by Amie at May 03, 2022, 05:06 PM

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Gerald

4 months ago

Yeah, they only need to document and understand, not search for issues.

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Lashaunda

4 months ago

Just to clarify, they still need to understand the controls, right?

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Eve

4 months ago

Wait, are you sure about that? Seems odd they wouldn't check for deficiencies.

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Gregoria

4 months ago

Totally agree, D is the right choice!

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Mauricio

5 months ago

I think it's D. They don't have to search for deficiencies.

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Rikki

5 months ago

I'm not entirely sure about this one. I'll have to think it through and use my best judgment to select the most appropriate answer.

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Loreta

5 months ago

VMware ESXi is the answer. It's a bare-metal hypervisor that runs directly on the hardware, which is the definition of a type-1 hypervisor.

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Maile

5 months ago

I remember we practiced a question similar to this, and I believe it was about ensuring uptime, so I'm leaning towards A as well.

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Maynard

5 months ago

Ah, I think I've got it. The Convert to virtual option is probably greyed out because the backup is on tape. The question mentions a Tape Library, so that's likely the reason.

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Salley

5 months ago

I remember learning this in class, but the formulas are a bit tricky to remember. I think the key is to focus on the definitions of the terms - SLE, EF, and ARO. If I can recall those, I should be able to figure out the right calculation.

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Lindsey

5 months ago

I'm a bit confused about option B too. I can't recall if "show counters status" is an accepted parser command.

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Arleen

5 months ago

Hmm, I'm a bit unsure about the exact Trivy command syntax to use here. I'll need to double-check the documentation to make sure I get the right flags and output format.

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Billye

5 months ago

This seems straightforward enough, but I want to double-check my work. I'll walk through it slowly and make sure I'm not missing anything.

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