Reportable Conditions Are Matters That Come to an Auditor's Attention

question 110

Multiple Choice

Reportable conditions are matters that come to an auditor's attention, which should be communicated to an entity's audit committee because they represent:

• A) significant deficiencies in the design or operation of the internal controls.
• B) intentional attempts by client personnel to limit the scope of the auditor's field work.
• C) flagrant violations of the entity's documented conflict- of- interest policies.
• D) material irregularities or illegal acts perpetrated by high- level management.

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Definitions:

Ratio

A quantitative relationship between two numbers showing how many times one value contains or is contained within the other.

Express

To show, manifest, or reveal something through words, gestures, actions, or artistic expression.

Proportion

A portion, fraction, or quantity assessed in relation to its total entity.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.