When the Auditor Identifies Significant Deficiencies in the Design or Operation

question 113

Multiple Choice

When the auditor identifies significant deficiencies in the design or operation of internal controls, it will be communicated to client's audit committee in the:

• A) audit report.
• B) management letter.
• C) reportable conditions letter.
• D) engagement letter.

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Definitions:

Contractual Agreement

A legally binding contract between two or more parties outlining their responsibilities and obligations.

Intensive

Characterized by or requiring significant effort or energy, often in reference to growth strategies or distribution methods.

Selective

Characterized by careful choice, especially based on very discerning taste or preferences.