When Communicating with the Audit Committee and Management

question 62

Multiple Choice

When communicating with the audit committee and management,

• A) only material fraud and illegal acts are required by auditing standards to be communicated.
• B) all internal control deficiencies are required by auditing standards to be communicated.
• C) the communications should be made in a timely manner to allow those charged with governance to take appropriate actions.
• D) all communications with the audit committee and management must be in writing.

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Definitions:

Unamortized Patent

The portion of a patent's acquisition cost that has yet to be expensed over its useful life to reflect its consumption or expiration.

Acquisition-Date

The specific date on which one company gains control over another company or business segment, pivotal for accounting and financial consolidation.