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:

Transparent

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Opaque

Not transparent or translucent; impossible to see through.

Translucent

A property of a material that allows light to pass through, but diffuses it so that objects on the other side cannot be clearly seen.

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