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.

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Definitions:

Health Savings Account

A tax-advantaged savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan.

High Deductible Health Plan

A health insurance plan with lower premiums and higher deductibles than traditional health plans, often coupled with a Health Savings Account (HSA).

Unreimbursed

Expenses that have not been paid back or compensated, especially reference to employee business expenses.

Tax-exempt

Not subject to tax by federal or local authorities, often applicable to certain income, property, or organizations.