Which of the Following Are True Regarding Communication Requirements an Auditor

question 555

Multiple Choice

Which of the following are true regarding communication requirements an auditor must follow when providing tax services to an audit client who is an issuer under the Sarbanes-Oxley Act of 2002?

• A) The auditor must communicate to the audit committee, in writing, regarding the proposed tax services and related fees. II. The auditor must communicate to the audit committee, in writing, when the proposed tax services involve contingent fee arrangements. III. The auditor must discuss with the audit committee the potential effects of the proposed tax services on the firm's independence.
• B) I and II only.
• C) I, II, and III.
• D) I and III only.
• E) II and III only.

---

Definitions:

RRSP

Registered Retirement Savings Plan (RRSP) is a Canadian financial account designed for individuals to save for retirement, offering tax benefits to incentivize saving.

Compounded Quarterly

Interest on a loan or investment is calculated four times a year, with each interest payment added to the principal.

RRSP

Registered Retirement Savings Plan, a Canadian financial account for holding savings and investment assets, aimed at retirement.

Ordinary Annuity

An annuity that makes regular payments to the annuitant at the end of each payment period for a fixed period of time.