AICPA Exam CPA-Auditing Topic 3 Question 111 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 111
Topic #: 3

[All CPA-Auditing Questions]

Which of the following factors would least likely affect the nature and extent of audit documentation?

AThe nature of the specific audit procedures.

BThe risk of material misstatement.

CThe extent to which judgment was required in performing the specific audit procedures.

DThe content of the representation letter.

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. The content of the representation letter will generally not affect the nature and extent of audit documentation. Factors affecting the nature and extent of audit documentation include:

1. The risk of material misstatement;

2. The extent to which judgment was required in performing the work and evaluating the results;

3. The nature of the specific auditing procedure;

4. The significance of the evidence obtained;

5. The nature and extent of any problems identified; and

6. The need to document conclusions that may not be obvious.

by Charlie at May 01, 2025, 05:45 PM

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1 months ago

I think the nature of the specific audit procedures is the least likely factor to affect the audit documentation. The documentation should cover the procedures regardless of their nature.

upvoted 0 times

Gail

13 days ago

B) The risk of material misstatement.

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Fannie

22 days ago

A) The nature of the specific audit procedures.

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