Reporting and Attestation Practice Question

Question

A test item asks for the most accurate explanation for the CPA AUD Auditing and Attestation involving analytical procedures in Reporting and Attestation. Which response best applies the concept? (Item 31)

Answer choices

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

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 analytical procedures scenario.

Explanation

The correct answer is C because analytical 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: medium
• Domain: Reporting and Attestation
• Objective: analytical procedures

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