Discuss AICPA CPA-Auditing Exam Topic 3 Question 59

Which of the following best describes an auditor's responsibility with respect to communicating internal control deficiencies of issuers?

AThe auditor is required to communicate all deficiencies in internal control to management, deficiencies that constitute a significant deficiency to the audit committee, and deficiencies that constitute a material weakness to the full board of directors.

BThe auditor is required to communicate all deficiencies in internal control to management, and deficiencies that constitute a significant deficiency or a material weakness to management and the audit committee.

CThe auditor is not required to communicate control deficiencies to management or the audit committee unless they constitute a significant deficiency or a material weakness.

DThe auditor is not required to communicate control deficiencies or significant deficiencies to management or the audit committee, but must communicate material weaknesses to both management and the audit committee.

Suggested Answer: B

Choice 'b' is correct. The auditor is required to communicate all deficiencies in internal control to management, and deficiencies that constitute a significant deficiency or a material weakness to management and the audit committee.

Choice 'a' is incorrect. There is no requirement that material weaknesses be communicated to the full board of directors.

Choice 'c' is incorrect. The auditor is required to communicate all deficiencies in internal control to management.

Choice 'd' is incorrect. The auditor is also required to communicate significant deficiencies to management and the audit committee.

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14 comments · newest first

Tyra 11 months ago

I thought they only had to report significant deficiencies, not all.

Zita 11 months ago

B seems right too, but A covers more ground.

Whitley 12 months ago

Wait, are you sure about that? Sounds a bit extreme.

Tiara 12 months ago

Totally agree, it’s crucial for transparency!

Theola 12 months ago

A is correct, auditors must communicate all deficiencies.

Cathrine 1 year ago

I’m leaning towards option B, but I’m not entirely confident. I just remember that significant deficiencies and material weaknesses have to be communicated to the audit committee.

Irene 1 year ago

I feel like option A sounds right, but I’m a bit confused about whether all deficiencies really need to go to management or just the significant ones.

Delsie 1 year ago

I remember practicing a question similar to this, and I think the key is that significant deficiencies and material weaknesses need to be communicated to the audit committee.

Vi 1 year ago

I think the auditor has to communicate all deficiencies to management, but I'm not sure if they need to tell the audit committee about everything or just the significant ones.

Joesph 1 year ago

I'm pretty confident that the correct answer is C - the operator's subscription, install plan, and cluster service version. Those are the core objects that control the operator installation.

Cordelia 1 year ago

This seems like a straightforward question about manufacturing lead time. I'll need to carefully review the options and think about which one doesn't fit.

Murray 1 year ago

I think the key here is understanding the active and standby roles of the nodes in the HA pair. The question is asking specifically about which node we can issue the command to, so I'll need to focus on that.

Nickolas 1 year ago

Based on the question, the minimum RAM required is 4 GB. I'm confident that's the right answer.

Maybelle 1 year ago

I think we approach this by calculating the contribution for each product first, but I'm not totally sure how to incorporate the maximum demand limits accurately.

AICPA CPA-Auditing Exam - Topic 3 Question 59 Discussion