Which of the Following Is NOT Required to Be Communicated

question 95

Multiple Choice

Which of the following is NOT required to be communicated to the audit committee or similarly designed body under ASA 260?

• A) All material irregularities and illegal acts of a material nature
• B) Disagreements with management about the scope of the audit, applicability of accounting principles or wording of the audit report
• C) Difficulties encountered in performing the audit such as lack of availability of client personnel and failure to provide necessary information
• D) Auditor's responsibilities under generally accepted auditing standards, including responsibility for evaluating internal control and the concept of reasonable rather than absolute assurance

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Definitions:

Debt-Equity Ratio

A metric that highlights the use of equity versus debt in the strategic funding of company assets.

Dividend Payout Ratio

A financial ratio that measures the proportion of earnings a company pays out to its shareholders in the form of dividends.

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company's total net income.