Evidence and Procedures Practice Question

Question

A scenario includes a common misconception for the CPA AUD Auditing and Attestation involving accounting estimates in Evidence and Procedures. What should the candidate understand? (Item 33)

Answer choices

1. A. The best answer is to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting for the accounting estimates scenario.
2. B. Document nothing because documentation could create follow-up questions.
3. C. Rely on informal custom instead of the applicable rule, control, or standard.
4. D. Skip verification because the previous case had the same answer.

Correct Answer

A. The best answer is to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting for the accounting estimates scenario.

Explanation

The correct answer is A because accounting estimates is tested by asking candidates to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting. The distractors reflect common exam mistakes: ignoring context, using informal shortcuts, skipping verification, or applying a rule from the wrong domain.

Question details

• Difficulty: easy
• Domain: Evidence and Procedures
• Objective: accounting estimates

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