ExpertMedium1 markMultiple Choice
CPA · Question 47 · Area III: SOC Engagements
What is the primary purpose of a 'Management Assertion' in a SOC engagement?
What is the primary purpose of a 'Management Assertion' in a SOC engagement?
Answer options:
A.
To guarantee that no fraud has occurred.
B.
To define the scope of the auditor's fees.
C.
To state management's responsibility for the system and their belief that controls were effective.
D.
To replace the need for an auditor's opinion.
How to approach this question
Recall that management must 'assert' (claim) the system works before the auditor checks it.
Full Answer
C.To state management's responsibility for the system and their belief that controls were effective.✓ Correct
C
Management must provide a written assertion acknowledging their responsibility for the design, implementation, and operation of controls, and stating whether those controls were effective during the period.
Common mistakes
Thinking the assertion comes from the auditor.
Practice the full CPA ISC Practice Exam 3
82 questions · hints · full answers · grading
More questions from this exam
Q01A CPA is advising a client who is migrating their legacy on-premise ERP system to a cloud-based s...MediumQ02During a review of a client's cloud governance structure, an auditor notes that the client uses a...MediumQ03An auditor is evaluating the 'Processing Integrity' principle for a financial institution's loan ...HardQ04A company uses a batch processing system to update inventory records overnight. The 'Grandfather-...HardQ05During a walkthrough of the change management process, an auditor observes that the 'Developer' r...Medium