Internal Control and Risk Assessment Practice Question

Question

A practitioner wants to reduce risk before proceeding for the CPA AUD Auditing and Attestation involving substantive procedures in Internal Control and Risk Assessment. Which statement is most accurate for exam purposes? (Item 168)

Answer choices

1. A. Assume the requirement applies only when the customer specifically asks about it.
2. B. Prioritize convenience over safety, compliance, or accurate reasoning.
3. C. Ignore the issue because speed is more important than documentation or accuracy.
4. D. The best answer is to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting for the substantive procedures scenario.

Correct Answer

D. The best answer is to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting for the substantive procedures scenario.

Explanation

The correct answer is D because substantive procedures 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: hard
• Domain: Internal Control and Risk Assessment
• Objective: substantive procedures

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