Which of the Following Best Describes an Auditor's Responsibility with Respect

question 812

Multiple Choice

Which of the following best describes an auditor's responsibility with respect to communicating internal control deficiencies of issuers?

• A) The auditor is required to communicate all deficiencies in internal control to management, deficiencies that constitute a significant deficiency to the audit committee, and deficiencies that constitute a material weakness to the full board of directors.
• B) The auditor is required to communicate all deficiencies in internal control to management, and deficiencies that constitute a significant deficiency or a material weakness to management and the audit committee.
• C) The auditor is not required to communicate control deficiencies to management or the audit committee unless they constitute a significant deficiency or a material weakness.
• D) The auditor is not required to communicate control deficiencies or significant deficiencies to management or the audit committee, but must communicate material weaknesses to both management and the audit committee.

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Definitions:

Instrumentality

The perception that a certain level of performance will lead to the attainment of a desired outcome.

High Power Need

A psychological term describing a person's desire to exert control or influence over others.

McClelland

A reference to David McClelland, an American psychologist known for his work on motivation needs theory, including the needs for achievement, affiliation, and power.

Behavior Modification

The use of empirical and operant conditioning techniques to change or adjust unhealthy or undesirable behaviors.