Which of the Following Statements Concerning an Auditor's Communication of Significant

question 329

Multiple Choice

Which of the following statements concerning an auditor's communication of significant deficiencies identified during the audit of a nonissuer is correct?

• A) The auditor should request a meeting with management one level above the source of the significant deficiencies to discuss suggestions for remedial action.
• B) Any report issued on significant deficiencies should indicate that providing assurance on internal control was not the purpose of the audit.
• C) Significant deficiencies discovered and communicated at an interim date should be reexamined with tests of controls before completing the engagement.
• D) Suggestions concerning administration efficiencies and business strategies should not be communicated in the same report with significant deficiencies.

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Definitions:

Performing

The act of carrying out or accomplishing tasks, actions, or performances as required or expected.

Discharged

In legal terms, this means that a debt has been paid off or obligations have been fulfilled, releasing the debtor from further responsibilities.

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract, outlining terms and conditions of a relationship.

Material Breach

A significant violation of a contract that justifies termination of the agreement by the other party.