Exam AUD topic 1 question 134 discussion

Actual exam question from AICPA's AUD

Question #: 134
Topic #: 1

When an independent CPA assists in preparing the financial statements of a publicly held entity, but has not audited or reviewed them, the CPA should issue a disclaimer of opinion. In such situations, the CPA has no responsibility to apply any procedures beyond:

A. Ascertaining whether the financial statements are in conformity with generally accepted accounting principles.
B. Determining whether management has elected to omit substantially all required disclosures.
C. Documenting that the internal control structure is not being relied on.
D. Reading the financial statements for obvious material misstatements.

Show Suggested Answer

Suggested Answer: D 🗳️
Choice "D" is correct. When an independent CPA assists in preparing the FS of a publicly held entity, but has not "audited" or "reviewed" them, the CPA should issue a disclaimer of opinion and has only the responsibility to read the FS for obvious material misstatements.
Choice "A" is incorrect. A disclaimer does not require ascertaining whether the FS are in conformity with GAAP.
Choice "B" is incorrect. A disclaimer does not require ascertaining whether management has elected to omit substantially all required disclosures.
Choice "C" is incorrect. A disclaimer of opinion does not require ascertaining whether or not the internal control structure is being relied upon.

by gemazyni at April 5, 2025, 4:13 p.m.

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