Professional Standards Require the Auditor to Communicate Certain Matters Pertaining

question 39

Multiple Choice

Professional standards require the auditor to communicate certain matters pertaining to the audit to those charged with governance. This communication would normally include all of the following except:

• A) disagreements with management.
• B) audit adjustments.
• C) specific audit procedures performed.
• D) material uncertainties that may cast doubt on the entity's ability to continue as a going concern.

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Definitions:

Proposed Schedule

A preliminary plan that outlines future activities or events, awaiting approval or finalization.

Account Balances

The amount of money in a financial account, calculated by subtracting debits from credits in the account.

Profit and Loss Sharing

A financial agreement where business profits and losses are shared among partners or stakeholders in a manner agreed upon, often used in Islamic finance.

Liquidation Expenses

Costs associated with the process of dissolving a company, including selling assets and paying off creditors.