AICPA Exam CPA-Auditing Topic 2 Question 62 Discussion

Actual exam question for AICPA's CPA Auditing and Attestation exam

Question #: 62
Topic #: 2

[All CPA Auditing and Attestation Questions]

Which of the following best describes the responsibility of the auditor to report significant deficiencies and material weaknesses in an attest engagement to examine the effectiveness of a nonissuer's internal control?

AThe auditor must communicate both significant deficiencies and material weaknesses.

BThe auditor must communicate material weaknesses, but need not disclose significant deficiencies.

CThe auditor must communicate significant deficiencies, but need not separately identify material weaknesses.

DNeither significant deficiencies nor material weaknesses are required to be communicated.

Show Suggested Answer

Suggested Answer: A

Choice 'a' is correct. In an attest engagement to examine the effectiveness of an entity's internal control, the auditor must communicate both significant deficiencies and material weaknesses to management and those charged with governance.

Choice 'b' is incorrect. The auditor is required to communicate significant deficiencies.

Choices 'c' and 'd' are incorrect. Both significant deficiencies and material weaknesses are required to be communicated to management and those charged with governance.

by Delmy at Dec 11, 2022, 08:37 AM

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