Internal Control and Risk Assessment Practice Question

Question

A student must apply the concept rather than define it only for the CPA AUD Auditing and Attestation involving review engagement in Internal Control and Risk Assessment. Which answer is best? (Item 179)

Answer choices

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

Correct Answer

C. The best answer is to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting for the review engagement scenario.

Explanation

The correct answer is C because review engagement 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: medium
• Domain: Internal Control and Risk Assessment
• Objective: review engagement

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