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AICPA CPA-Auditing Exam - Topic 2 Question 78 Discussion

When auditing an entity's financial statements in accordance with Government Auditing Standards, an auditor should prepare a written report on the auditor's:
A) Identification of the causes of performance problems and recommendations for actions to improve operations.
B) Understanding of internal control and assessment of control risk.
C) Field work and procedures that substantiated the auditor's specific findings and conclusions.
D) Opinion on the entity's attainment of the goals and objectives specified by applicable laws and regulations.

AICPA CPA-Auditing Exam - Topic 2 Question 78 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 78
Topic #: 2
[All CPA-Auditing Questions]

When auditing an entity's financial statements in accordance with Government Auditing Standards, an auditor should prepare a written report on the auditor's:

Show Suggested Answer Hide Answer
Suggested Answer: A

Choice 'a' is correct. An auditor's communication of internal control related matters noted in an audit usually should be addressed to management and those charged with governance.

Choices 'b', 'c', and 'd' are incorrect. The director of internal auditing, the chief financial officer, and the chief accounting officer all would have access to the letter; however, it would not be addressed to them since they do not have the same level of authority and responsibility to the shareholders as management and those charged with governance.


by Alex at Dec 08, 2023, 04:07 PM

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Dick
8 months ago
Totally agree with D, it’s all about compliance!
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Billye
8 months ago
Just a reminder, the auditor's report must include findings from field work.
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Danilo
8 months ago
Wait, are we sure about that? Seems like a lot to cover.
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Noah
8 months ago
I think B is more relevant for internal controls.
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Cathrine
8 months ago
Definitely goes with option D, that's the main goal!
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Mabel
9 months ago
I’m leaning towards option D since it seems to align with what we discussed about compliance with laws and regulations in our last review session.
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Holley
9 months ago
I feel like the auditor's report should definitely include findings and conclusions from the fieldwork, but I might be mixing that up with other types of audits.
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Joni
9 months ago
I remember practicing a question about internal controls, but I can't recall if that was specifically for Government Auditing Standards.
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Theodora
9 months ago
I think the report should focus on the opinion regarding the entity's goals and objectives, but I'm not entirely sure if that's the main requirement.
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Stefania
9 months ago
I'm a little confused by this question. The options seem to cover different aspects of the audit, but I'm not sure which one is the correct answer for the specific requirement of the auditor's report. I'll need to review the relevant standards to make sure I understand the right answer.
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Barney
9 months ago
Okay, I've got this. The key here is that the question is asking specifically about the auditor's report, not the overall audit process. Option C looks like the best fit, focusing on the fieldwork and procedures that support the auditor's findings and conclusions.
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Leota
9 months ago
This seems like a straightforward question about the required contents of an auditor's report under Government Auditing Standards. I'll carefully review the options and choose the one that best matches the description.
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Tony
9 months ago
Hmm, I'm a bit unsure about this one. The options cover a range of potential report contents, and I'll need to think carefully about which one is the most accurate based on the Government Auditing Standards requirements.
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Carol
9 months ago
Okay, I remember learning about subnetting in class. I think I can figure this out.
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Stephaine
10 months ago
Okay, I think I know the answer here. The variables_by_thread table should have the sort_buffer_size values for each connection.
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Loren
1 year ago
Ha! Auditors and their reports, always keeping us on our toes. I bet they have a secret handshake too. But seriously, option C is the way to go here. Can't skimp on the details when it comes to government audits.
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Kent
1 year ago
Definitely, the devil is in the details when it comes to auditing.
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Fannie
1 year ago
I agree, attention to detail is key in government audits.
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Franchesca
1 year ago
Option C) Field work and procedures that substantiated the auditor's specific findings and conclusions.
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Onita
1 year ago
I'm not sure why anyone would choose option D. The auditor's report is about the audit procedures and findings, not the entity's attainment of goals and objectives. That's a separate evaluation that may be included in the report, but it's not the primary focus.
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Elli
1 year ago
I agree, the auditor's report should focus on the audit procedures and findings.
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Arlen
1 year ago
C) Field work and procedures that substantiated the auditor's specific findings and conclusions.
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Doug
1 year ago
A) Identification of the causes of performance problems and recommendations for actions to improve operations.
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Kristel
1 year ago
I agree with Tyra. The auditor's report should provide details on the work performed and the evidence gathered to support the audit findings. Options A, B, and D seem to be addressing different aspects of the audit process.
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Yuki
1 year ago
Definitely. Without that information, it would be hard to assess the reliability of the audit findings.
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Noel
1 year ago
Agreed. It's important for the report to outline the evidence gathered during the audit.
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Rhea
1 year ago
I think that's correct. The auditor's report should definitely include details on the procedures followed.
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Madelyn
1 year ago
Option C) Field work and procedures that substantiated the auditor's specific findings and conclusions.
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Tyra
1 year ago
Option C seems to be the most appropriate answer here. The question specifically asks about the auditor's report, and the written report should focus on the fieldwork and procedures that substantiated the auditor's findings and conclusions.
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Svetlana
1 year ago
Yes, that's right. The written report should definitely focus on the specific findings and conclusions based on the field work and procedures.
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Sharen
1 year ago
I agree, option C is the best choice. It's all about the field work and procedures that support the auditor's findings.
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Chuck
1 year ago
Yes, the auditor's report should outline the fieldwork and procedures that support their findings and conclusions.
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Bok
1 year ago
I agree, option C is the best choice because it directly relates to the auditor's report.
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Cherry
1 year ago
I'm not sure, but I think it's important for the auditor to provide a clear explanation of how they arrived at their findings.
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Kent
1 year ago
I agree with Gabriele. The auditor's report should be based on the field work and procedures conducted during the audit.
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Gabriele
1 year ago
I think the answer is C) Field work and procedures that substantiated the auditor's specific findings and conclusions.
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