Area I: Ethics & General Principles — CPA Practice Question 06

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Recall the 'Experienced Auditor' standard from AU-C 230. Documentation must tell the story of the audit to someone who wasn't there.

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B.The documentation must be sufficient to enable an experienced auditor, having no previous connection with the audit, to understand the significant professional judgments made in reaching conclusions.✓ Correct

B

AU-C 230 states that audit documentation must be sufficient to enable an experienced auditor, having no previous connection with the audit, to understand: (a) the nature, timing, and extent of procedures; (b) the results of procedures and evidence obtained; and (c) significant findings or issues, conclusions reached, and significant professional judgments made.

Common mistakes

Focusing on quantity (every conversation) rather than quality (rationale for judgments).

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Common mistakes

Practice the full CPA AUD Practice Exam 2

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