AICPA CPA-Auditing Exam - Topic 3 Question 60 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 60
Topic #: 3

For a nonissuer, a previously communicated significant deficiency that has not been corrected, ordinarily should be communicated again:

AOnly if the deficiency has a material effect on the auditor's assessment of control risk.

BUnless the entity accepts that degree of risk because of cost-benefit considerations.

COnly if the deficiency is considered a material weakness.

DIn writing, during the current audit.

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. A previously communicated significant deficiency that has not been corrected ordinarily should be communicated again in writing, during the current audit.

Choices 'a' and 'c' are incorrect. The auditor is required to communicate significant deficiencies each year, regardless of whether the deficiency has a material effect on the auditor's assessment of control risk or the deficiency is considered a material weakness.

Choice 'b' is incorrect. The auditor is required to communicate significant deficiencies each year, even if the entity accepts that degree of risk because of cost-benefit considerations.

by Dottie at Oct 26, 2022, 01:47 AM

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Phuong

4 months ago

Not sure about D, seems like overkill for a deficiency.

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Margery

4 months ago

B makes sense too, cost-benefit is a real factor.

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Chau

4 months ago

Wait, isn't it only if there's a material weakness?

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Leatha

4 months ago

Agree with D, communication is key!

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Teresita

4 months ago

I think it's D, definitely needs to be in writing.

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Noble

5 months ago

I’m confused about whether a significant deficiency needs to be communicated again if it’s not a material weakness. I wish I could remember the exact guidelines!

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Ettie

5 months ago

I’m leaning towards option D because I recall that significant deficiencies should be documented in writing during the audit process.

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Charlena

5 months ago

I feel like there was a practice question about this, and it mentioned something about cost-benefit considerations. Maybe that's relevant here?

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Lizette

5 months ago

I think I remember that we need to communicate significant deficiencies again if they impact control risk, but I'm not entirely sure if that's the only condition.

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Beatriz

5 months ago

Ah, this is a good one. The information security manager needs to balance the risk of a breach with the proper classification of data. I think I know the right approach, but I'll double-check my reasoning before selecting an answer.

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Maira

5 months ago

Okay, let's see. The CISO has implemented a risk management capability, so it's likely a program or portfolio-level function, not just a single service. I'm leaning towards "Program" or "Portfolio" as the best answer.

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Xuan

5 months ago

Alright, time to put my AWS knowledge to the test. I believe the correct answers are A and B - we can upgrade or downgrade the instance configuration.

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Miesha

5 months ago

Hmm, I'm not sure about this. I know the auditors have some role in detecting fraud, but I can't remember the specifics. I'll have to think this through carefully.

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