Which of the Following Matters Is an Auditor Required to Communicate

question 15

Multiple Choice

Which of the following matters is an auditor required to communicate to those charged with governance?

• A) Adjustments that were suggested by the auditor and recorded by management that have a significant effect on the entity's financial reporting process.
• B) The auditor's consideration of risk factors in assessing the risk of material misstatement arising from the misappropriation of assets.
• C) The results of the auditor's analytical procedures performed in the review stage of the engagement that indicate significant variances from expected amounts.
• D) Changes in the auditor's preliminary judgment about materiality that were caused by projecting the results of statistical sampling for tests of transactions.

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Definitions:

Trust With Clients

Refers to the confidence built between clients and their service providers, essential for establishing long-term relationships and ensuring client satisfaction.

PR Spin

The act of presenting information or a narrative in a way that potentially alters public perception in favor of the entity controlling the message.

Manipulating Public

The unethical practice of influencing or controlling the opinions and behaviors of the public through misleading or deceptive information.

PR Communication

The strategies and processes used by individuals or organizations to manage and disseminate information to the public and the media.