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Exam AUD topic 1 question 913 discussion

Actual exam question from AICPA's AUD
Question #: 913
Topic #: 1
[All AUD Questions]

Which of the following statements is correct concerning significant deficiencies in internal control with respect to an audit of a nonissuer?

  • A. An auditor is required to search for significant deficiencies during an audit.
  • B. All significant deficiencies are also considered to be material weaknesses.
  • C. An auditor may communicate significant deficiencies during an audit or after the audit's completion.
  • D. An auditor may report that no significant deficiencies were noted during an audit.
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Suggested Answer: C 🗳️
Choice "C" is correct. Because timely communication may be important, the auditor may choose to communicate significant deficiencies during the course of the audit rather than after the audit is concluded.
Choice "A" is incorrect. The auditor is not obligated to search for significant deficiencies.
Choice "B" is incorrect. All material weaknesses are significant deficiencies, but not all significant deficiencies are material weaknesses.
Choice "D" is incorrect. Because of the potential for misinterpretation, the auditor should not issue a written report representing that no significant deficiencies were noted during the audit.
by gemazyni at April 5, 2025, 5:17 p.m.

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