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

question 69

Multiple Choice

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

• A)disclosures of information that significantly contradict the auditor's going concern assumption.
• B)material fraud or illegal acts perpetrated by high-level management.
• C)deficiencies in the design of controls or failures in the operation of internal controls.
• D)manipulation or falsification of accounting records or documents from which financial statements are prepared.

---

Definitions:

Informal Small Talk

Casual and informal conversation about non-work related topics used to build relationships in a professional setting.

Maintain Contacts

The practice of keeping in touch with professional and personal connections to foster relationships and opportunities.

Internal Visibility

The extent to which an individual's or group's work and performance are recognized within an organization.

Political Skill

The ability to understand and influence others in a way that enhances personal and organizational objectives.