AICPA CPA-Auditing Exam - Topic 2 Question 62 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 62
Topic #: 2

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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Darrin

4 months ago

Pretty sure it's A, but I guess it depends on the specific engagement.

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Shaunna

4 months ago

I don't think they need to report everything, option D seems plausible.

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Doyle

4 months ago

Wait, are you sure about that? I thought it was just material weaknesses.

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Jacquelyne

4 months ago

Totally agree, option A is the way to go!

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Lasandra

4 months ago

The auditor must communicate both significant deficiencies and material weaknesses.

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Leah

5 months ago

I’m leaning towards A as well, but I remember there being some nuances about what needs to be communicated. It’s tricky!

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Tiara

5 months ago

I feel like I might be mixing up the definitions here. I thought significant deficiencies were also important, but I can't recall if they have to be reported.

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Teri

5 months ago

I remember practicing a question similar to this, and I think it was about material weaknesses being mandatory to report. So, maybe B is correct?

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Lai

5 months ago

I think the auditor has to report both significant deficiencies and material weaknesses, but I'm not entirely sure. It seems like A makes the most sense.

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Chaya

5 months ago

Hmm, I'm not totally sure about this one. The value proposition could be for the supplier, sponsor, or customer. I'll have to think it through carefully.

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