Which of the Following Statements Is Most Correct About an Auditor's

question 115

Multiple Choice

Which of the following statements is most correct about an auditor's required communication with management and those charged with corporate governance?

• A)The auditor is required to inform those charged with governance about significant errors discovered and subsequently corrected by management.
• B)Any significant matter reported to those charged with governance must also be communicated to management.
• C)Communication is required before the audit report is issued.
• D)Auditor does not have any requirement to communicate with anyone other than the company's senior management.

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Definitions:

Microsoft

A global technology company known for its software products, including the Windows operating system and the Office suite.

Sherman Antitrust Act

A landmark federal statute passed in the United States in 1890 that outlawed monopolistic business practices.

Restraints of Trade

Practices or agreements that restrict free competition in business, often scrutinized for legality under antitrust laws.

Consent Decrees

Legal agreements that settle a dispute between parties without admission of guilt but with the agreement to do or stop doing a certain activity.