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:

Remembering

involves the process of recalling information that has been previously encoded and stored in memory.

Sympathetic Nervous System

Part of the autonomic nervous system that orchestrates the body's 'fight or flight' response.

Sensory Deprivation

A condition in which one is deprived of normal sensory input, which can lead to various cognitive and psychological effects.

Meditation

A practice where an individual uses a technique – such as mindfulness or focusing their mind on a particular thought, object, or activity – to achieve mental clarity and emotional calmness.