Exam AUD topic 1 question 88 discussion

Actual exam question from AICPA's AUD

Question #: 88
Topic #: 1

An auditor is considering whether the omission of a substantive procedure considered necessary at the time of an audit may impair the auditor's present ability to support the previously expressed opinion. The auditor need not apply the omitted procedure if the:

A. Financial statements and auditor's report were not distributed beyond management and the board of directors.
B. Auditor's previously expressed opinion was qualified because of a departure from GAAP.
C. Results of other procedures that were applied tend to compensate for the procedure omitted.
D. Omission is due to unreasonable delays by client personnel in providing data on a timely basis.

Show Suggested Answer

Suggested Answer: C 🗳️
Explanation -
Choice "C" is correct. When the auditor concludes that an auditing procedure considered necessary at the time of the audit was omitted, the auditor should assess the importance of the procedure to the present ability to support the previously issued opinion. The results of other procedures that were applied may tend to compensate for the one omitted or make its omission less important.
Choice "A" is incorrect. If a procedure has been omitted, the auditor must consider whether other parties may be relying on the financial statements, even if the audit report had limited distribution.
Choice "B" is incorrect. The fact that the previous opinion was qualified does not negate the need to apply the omitted procedure.
Choice "D" is incorrect. Delays by client personnel may extend audit work, but do not provide a reason for omitting a procedure.

by gemazyni at April 5, 2025, 4:09 p.m.

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