With Respect to the Audit of a Nonissuer, Significant Deficiencies

question 898

Multiple Choice

With respect to the audit of a nonissuer, significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's management and those charged with governance because they represent:

• A) Manipulation or falsification of accounting records or documents from which financial statements are prepared.
• B) Disclosures of information that significantly contradict the auditor's going concern assumption.
• C) Material irregularities or illegal acts perpetrated by high-level management.
• D) Deficiencies in the design or operation of internal control that could reasonably be expected to cause a non-inconsequential misstatement in the financial statements.

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Definitions:

Accommodating Emotional Style

A behavioral approach that prioritizes others' emotional needs and seeks to adjust oneself to bring comfort or harmony in interactions.

Workplace

A place where people are employed and carry out tasks related to their jobs.

Self-disclosure

A process in interpersonal interactions where individuals share personal, private, or sensitive information about themselves with others, fostering intimacy or trust.

Stress Relief

Activities or practices that reduce tension and anxiety, promoting emotional and physical well-being.