Reporting and Attestation Practice Question

Question

A candidate is reviewing a practice scenario for the CPA AUD Auditing and Attestation involving analytical procedures in Reporting and Attestation. Which response best applies the concept? (Item 131)

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 analytical procedures 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 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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