AICPA CPA-Auditing Exam - Topic 3 Question 4 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 4
Topic #: 3

When an auditor believes there is substantial doubt about the ability of an entity to continue as a going concern, all of the following should be included in the audit documentation, except:

AThe conditions that gave rise to the substantial doubt.

BThe auditor's conclusion about whether substantial doubt remains or is alleviated.

CManagement's conclusion regarding whether substantial doubt remains or is alleviated.

DThe effect of the auditor's conclusion on the auditor's report.

Show Suggested Answer

Suggested Answer: C

Choice "c" is correct. Whether substantial doubt remains or is alleviated is a judgment call made by the auditor, and there is no requirement to document management's opinion on the matter.

Choices "a", "b", and "d" are incorrect. When an auditor believes there is substantial doubt about the ability of an entity to continue as a going concern, the conditions that gave rise to the substantial doubt, the auditor's conclusion about whether substantial doubt remains or is alleviated, and the effect of the auditor's conclusion on the auditor's report should all be documented.

by Heike at May 06, 2022, 05:43 AM

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5 months ago

This is a good one. I've seen questions like this before, so I'm feeling confident. I'll carefully read through the options and use my knowledge of Splunk configuration to identify the correct answer.

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