[barelystayingsane]

I got this question right, but I don’t understand why a. isn’t also correct. The answer key says that a list of procedures and findings is required for an agreed-upon procedures engagement, not an audit, but I thought you were supposed to show the procedures, results, and significant findings for future auditors’ reference. Thanks!

Which of the following documentation is required for an audit in accordance with GAAS?

a. A list of the procedures performed and the findings obtained.

b. An indication in the audit documentation that the accounting records agree or reconcile with the financial statements.

c. A flowchart or an internal control questionnaire that evaluates the effectiveness of the entity’s internal control.

d. A management representation letter that summarizes the timing and details of the auditor’s planned fieldwork.

[Amay]

I remember thinking about this one too, but the best answer is B. Although audit documentation should be good enough so that an experienced auditor with no prior experience with the client can replicate the work, there are no specific requirements that the documentation needs to have the procedures listed and the findings. Those key words (procedures and findings) are really related to an AUP job, where you are required to list those out in your final report.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

And you should always show that the financial statements agree to the underlying records since that is the main purpose of an audit; to show that what is stated in the financial statements is really what happened and is in accordance with the accounting records.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Author]

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