What is the primary purpose of a 'Management Assertion' in a SOC engagement?

Answer options:

To guarantee that no fraud has occurred.

To define the scope of the auditor's fees.

To state management's responsibility for the system and their belief that controls were effective.

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

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.

Question 46 All questions Question 48

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...Medium Q02During a review of a client's cloud governance structure, an auditor notes that the client uses a...Medium Q03An auditor is evaluating the 'Processing Integrity' principle for a financial institution's loan ...Hard Q04A company uses a batch processing system to update inventory records overnight. The 'Grandfather-...Hard Q05During a walkthrough of the change management process, an auditor observes that the 'Developer' r...Medium

View all 82 questions →