Significant Deficiencies Are Matters That Come to an Auditor's Attention

question 49

Multiple Choice

Significant deficiencies are matters that come to an auditor's attention and should be communicated to an entity's audit committee because they represent:

• A)material frauds perpetrated by high-level management.
• B)internal control deficiencies that could adversely affect a company's ability to initiate, record, process, or report external financial statements reliably.
• C)flagrant violations of the entity's documented conflict-of-interest policies.
• D)intentional attempts by client personnel to limit the scope of the auditor's field work.

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Definitions:

Subject Lines

The titles or headings of emails, designed to give the recipient an idea of the email content.

Effective

Achieving the expected or sought-after outcome effectively.

Business Writer

A professional who specializes in creating various forms of written content for business purposes, such as reports, emails, proposals, and manuals.

Bad News

Information that is unwelcome, disappointing, or distressing to the receiver.