Reportable Conditions Are Matters That Come to an Auditor's Attention

question 23

Multiple Choice

Reportable conditions are matters that come to an auditor's attention, which should be communicated to an entity's audit committee because they represent:

• A) significant deficiencies in the design or operation of the internal controls.
• B) flagrant violations of the entity's documented conflict-of-interest policies.
• C) intentional attempts by client personnel to limit the scope of the auditor's field work.
• D) material irregularities or illegal acts perpetrated by high-level management.

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Definitions:

Customer Needs

The recognized necessities, desires, or preferences of consumers that a company aims to fulfill with its products or services.

Corporate Philanthropy

The act of a corporation donating resources, including money, time, or products, to non-profit organizations or causes for the social good.

Employee Engagement

The degree to which workers are enthusiastic about their roles, dedicated to their employer, and willingly go above and beyond in their tasks.

Project ROI

Stands for "Return on Investment" in a project context, measuring the profitability of an investment compared to its cost.