Which of the Following Statements Is True Regarding the Communication

question 148

Multiple Choice

Which of the following statements is true regarding the communication of audit engagement observations?

• A) Criteria, condition, cause, and effect must be communicated for material observations only
• B) Criteria, condition, cause, and effect must be communicated for material observations and significant deficiencies only
• C) Criteria, condition, cause, and effect must be communicated for all engagement observations.
• D) Criteria, condition, cause, and effect do not need to be communicated for insignificant observations with adequate compensating key controls.

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Definitions:

Smartphones

Mobile phones that offer advanced computing ability and connectivity, including access to the internet and various applications.

Automobile

A wheeled vehicle that is self-propelled and used for transporting passengers or goods on land.

Argument By Analogy

A form of reasoning where an argument is made by comparing two situations and inferring that what is true for one is true for the other based on their similarities.

Induction

A method of reasoning in which a generalization is argued to be true based on individual instances or empirical evidence.