[TBone]

Here is the question:

An auditor of a nonissuer should design tests of details to ensure that sufficient appropriate audit evidence supports which of the following?

A. The planned level of control risk

B. Management’s assertions that internal controls exist and are operating efficiently

C. The effectiveness of internal controls

D. The planned level of assurance at the relevant assertion level

The answer is D and here is the explanation given:

“In a review engagement or compilation engagement, the accountant should accumulate evidence to obtain the relevant assertion level. The other answer choices are incorrect because in a review engagement or compilation engagement, the accountant does not contemplate obtaining an understanding of the entity’s internal control.”

Where the hell did the original question mention a review or compilation? Is there a key word that i missed that should make me think “oh this is about a review or compilation engagement.”

I’ve come across a few questions like this.

FAR: 66, 75
AUD: 67, 69, 70, 74, 74
REG: 71, 79
BEC: 73

[Biff-1955-Tannen]

That explanation definitely seems out of place considering that you don't do tests of detail for compilations or reviews. Tests of details tells me that it's an audit engagement, which then D is the appropriate answer. I would definitely disregard that explanation…

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[win2bet]

yea, the explanation is wacky. test of details is testing to make sure the “end result” is correct, so D is best for that

REG 68,87
BEC 85
FAR 75
AUD 64,64, 86!

[Author]

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