AICPA CPA-Auditing Exam - Topic 3 Question 3 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 3
Topic #: 3

When qualifying an opinion because of an insufficiency of audit evidence, an auditor should refer to the situation in the:

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: B

Choice "b" is correct. When a qualified opinion is issued due to a lack of sufficient audit evidence, the lack of evidence should be disclosed in an explanatory paragraph before the opinion paragraph. Since insufficient evidence is a scope limitation, the scope paragraph should also be modified to refer to the limitation and to the explanatory paragraph that discusses it.

Choices "a" and "c" are incorrect. Management (and not the auditor) prepares the notes to the financial statements. The auditor therefore would not refer to this (or any other) situation in the notes to the financial statements.

Choice "d" is incorrect. The auditor does refer to the situation in the scope paragraph.

by Serina at May 08, 2022, 04:59 AM

Limited Time Offer

25%

Off

Get Premium CPA-Auditing Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Sena

4 months ago

Not so sure about that, I think it could be Option D too.

upvoted 0 times

...

Vanna

4 months ago

Totally agree with you, Doug!

upvoted 0 times

...

Jutta

4 months ago

Wait, is it really that straightforward?

upvoted 0 times

...

Naomi

4 months ago

I thought it was Option C, but I see your point.

upvoted 0 times

...

Doug

5 months ago

It's definitely Option B, that's the standard practice.

upvoted 0 times

...

Reta

5 months ago

This is a good opportunity to demonstrate my troubleshooting skills. I'll make sure to thoroughly explain my reasoning for the 3 logs I select to the support team when I open the case.

upvoted 0 times

...

Regenia

5 months ago

This question seems a bit technical, but I think I can work through it. Let me think about the key concepts involved - high-definition graphics, desktop technology, and 25m-level expression editing tasks. I'll try to match those up with the answer choices.

upvoted 0 times

...

Geoffrey

5 months ago

I feel like the "Cisco Unified Contact Center Express Editor" is just for script development, not for live debugging.

upvoted 0 times

...

Nan

5 months ago

Wait, isn't senior management involvement critical in private banking compliance? Option D seems really important too.

upvoted 0 times

...