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AICPA Exam CPA-Auditing Topic 3 Question 65 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 65
Topic #: 3
[All CPA-Auditing Questions]

In an audit of an issuer:

i. Management must assess and report on internal control.

ii. The auditor must assess and report on internal control.

Show Suggested Answer Hide Answer
Suggested Answer: D

Choice 'd' is correct. When obtaining an understanding of an entity's internal control in a financial statement audit, an auditor is not obligated to search for significant deficiencies in the operation of internal control.

Choice 'a' is incorrect. In order to determine the nature, timing and extent of tests to be performed, an auditor must determine whether the control activities have been implemented.

Choice 'b' is incorrect. An auditor is required to perform procedures to confirm his/her understanding of the internal control systems' design, and to determine whether relevant controls have been implemented.

Choice 'c' is incorrect. An auditor is required to document his or her understanding of the entity's internal control components, even if he or she intends to use a substantive approach.


Contribute your Thoughts:

Evangelina
1 months ago
I'll go with option E: the janitor has to assess and report on internal control. Because who knows the inner workings of a company better than the person mopping the floors, am I right?
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Dana
2 months ago
D has got to be the answer. Auditors and management need to work together on internal control, it's not a solo act. Teamwork makes the dream work, am I right?
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Bobbye
14 days ago
Agreed. It's important for both parties to collaborate and ensure the accuracy and effectiveness of internal control measures.
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Noemi
16 days ago
Yes, you're right. Both management and auditors play a crucial role in assessing and reporting on internal control.
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Matt
1 months ago
D has got to be the answer. Auditors and management need to work together on internal control, it's not a solo act. Teamwork makes the dream work, am I right?
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Felix
2 months ago
This is a tricky one, but I'm going with C. Either management or the auditor can take on this task, it's not a requirement for both.
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Kerrie
10 days ago
I agree with the first user, it's D. Both I and II are required in an audit of an issuer.
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Jolene
1 months ago
I disagree, I believe it's C. Either management or the auditor can do it.
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Mike
1 months ago
I think it's D. Both management and the auditor must assess and report on internal control.
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Albina
2 months ago
B seems like the right choice to me. The auditor, not management, is responsible for assessing and reporting on internal control. That's the auditor's job, not the company's.
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Francoise
47 minutes ago
So, the auditor must assess and report on internal control, not management.
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Lonny
9 days ago
I agree, the auditor's role is to evaluate the internal control of the issuer.
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Makeda
12 days ago
B seems correct. The auditor is the one responsible for assessing and reporting on internal control.
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Rebeca
24 days ago
That's the auditor's job, not the company's.
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Merlyn
1 months ago
The auditor, not management, is responsible for assessing and reporting on internal control.
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Tamra
1 months ago
B seems like the right choice to me.
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Telma
2 months ago
I think D is the correct answer. Both management and the auditor have a responsibility to assess and report on internal control. It's a dual obligation.
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Reena
1 months ago
Yes, that's correct. Both parties play a role in assessing and reporting on internal control.
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Mel
1 months ago
So, the answer would be Both I and II, D.
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Aliza
1 months ago
I agree, it's a shared responsibility between management and the auditor.
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Peggie
2 months ago
D is correct. Both management and the auditor have to assess and report on internal control.
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Cyndy
2 months ago
I'm not sure, but I think the answer might be C) Either I or II, because either management or auditor can assess and report on internal control.
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Josphine
2 months ago
I agree with Alba, because both management and auditor have roles in assessing and reporting on internal control.
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Alba
2 months ago
I think the answer is D) Both I and II.
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