AICPA Exam CPA-Auditing Topic 2 Question 78 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 78
Topic #: 2

When auditing an entity's financial statements in accordance with Government Auditing Standards, an auditor should prepare a written report on the auditor's:

AIdentification of the causes of performance problems and recommendations for actions to improve operations.

BUnderstanding of internal control and assessment of control risk.

CField work and procedures that substantiated the auditor's specific findings and conclusions.

DOpinion on the entity's attainment of the goals and objectives specified by applicable laws and regulations.

Show Suggested Answer

Suggested Answer: A

Choice 'a' is correct. An auditor's communication of internal control related matters noted in an audit usually should be addressed to management and those charged with governance.

Choices 'b', 'c', and 'd' are incorrect. The director of internal auditing, the chief financial officer, and the chief accounting officer all would have access to the letter; however, it would not be addressed to them since they do not have the same level of authority and responsibility to the shareholders as management and those charged with governance.

by Alex at Dec 08, 2023, 04:07 PM

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Onita

7 days ago

I'm not sure why anyone would choose option D. The auditor's report is about the audit procedures and findings, not the entity's attainment of goals and objectives. That's a separate evaluation that may be included in the report, but it's not the primary focus.

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Kristel

18 days ago

I agree with Tyra. The auditor's report should provide details on the work performed and the evidence gathered to support the audit findings. Options A, B, and D seem to be addressing different aspects of the audit process.

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Rhea

3 days ago

I think that's correct. The auditor's report should definitely include details on the procedures followed.

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Madelyn

4 days ago

Option C) Field work and procedures that substantiated the auditor's specific findings and conclusions.

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Tyra

26 days ago

Option C seems to be the most appropriate answer here. The question specifically asks about the auditor's report, and the written report should focus on the fieldwork and procedures that substantiated the auditor's findings and conclusions.

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Bok

7 days ago

I agree, option C is the best choice because it directly relates to the auditor's report.

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Cherry

1 months ago

I'm not sure, but I think it's important for the auditor to provide a clear explanation of how they arrived at their findings.

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Kent

1 months ago

I agree with Gabriele. The auditor's report should be based on the field work and procedures conducted during the audit.

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Gabriele

1 months ago

I think the answer is C) Field work and procedures that substantiated the auditor's specific findings and conclusions.

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