Which of the Following Best Describes the Responsibility of the Auditor

question 235

Multiple Choice

Which of the following best describes the responsibility of the auditor to report significant deficiencies and material weaknesses in an audit of a nonissuer?

• A) The auditor must communicate both significant deficiencies and material weaknesses.
• B) The auditor must communicate material weaknesses, but need not disclose significant deficiencies.
• C) The auditor must communicate significant deficiencies, but need not separately identify material weaknesses.
• D) Neither significant deficiencies nor material weaknesses are required to be communicated.

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Definitions:

Venture Capitalist Funds

Funds pooled from investors for the purpose of investing in startup companies and small businesses with the potential for long-term growth.

Professional Investor

An individual or entity that invests in various financial instruments or assets as a primary occupation, often with considerable experience and resources.

Early-stage

Refers to the initial periods or phases in the development or progress of something, often used in the context of startups or new projects.

Long-term Growth

The sustained increase in the economic performance or potential of an entity over an extended period, often involving strategies aimed at competitive advantage, market expansion, and innovation.