Reporting and Attestation Practice Question

Question

A professional is deciding the best next action for the CPA AUD Auditing and Attestation involving tests of controls in Reporting and Attestation. Which option best reduces risk or error? (Item 47)

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 tests of controls 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 tests of controls scenario.

Explanation

The correct answer is C because tests of controls 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: Reporting and Attestation
• Objective: tests of controls

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