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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Margarita

5 days ago

You might be right, it does depend on the judgment required in performing the procedures too.

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Alyce

8 days ago

But don't you think the nature of the specific audit procedures plays a bigger role?

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Selma

8 days ago

I'm tempted to choose the representation letter just because it sounds like the most random option. But I'll stick with my gut and go with the nature of the audit procedures. Gotta keep it simple, you know?

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Launa

18 hours ago

I think the risk of material misstatement is also important to consider when documenting the audit.

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Lashunda

2 days ago

I agree, the nature of the audit procedures is a key factor in determining the extent of audit documentation.

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Dottie

17 days ago

I'm going with option B. The risk of material misstatement is a critical factor that should drive the nature and extent of audit documentation. Can't go wrong with that.

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Doyle

4 days ago

I agree, option B is definitely a key factor in determining the extent of audit documentation.

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2 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.

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Roslyn

5 days ago

C) The extent to which judgment was required in performing the specific audit procedures.

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Gail

29 days ago

B) The risk of material misstatement.

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Fannie

1 months ago

A) The nature of the specific audit procedures.

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