An Auditor of a Company Finds That There Are Rare

question 15

Multiple Choice

An auditor of a company finds that there are rare and exceptional circumstances where they are unable to comply with a relevant requirement in an auditing standard. They are however able to perform appropriate alternative audit
Procedures. To whom do they have to report or document these circumstances?

• A) The auditor must report these circumstances to either management or the audit committee and obtain their agreement that the alternative procedures are appropriate.
• B) If the auditor can use appropriate alternative audit procedures, no reporting or documentation required.
• C) The auditor is required to document the circumstances in the auditor's report.
• D) The auditor is required to document the circumstances in the audit working papers.

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Definitions:

Intervention Group

A group in a scientific study that receives the treatment or intervention being tested, as opposed to a control group which does not.

Control Group

A group in an experiment or study that does not receive treatment by the researchers and is then used as a benchmark to measure how the other tested subjects do.

Masking

A method used in research where the participants and/or researchers are unaware of which individuals are in the control group and which are in the experimental group, to prevent bias.

Confounding

A situation in which the effect of two variables on a third is not clearly distinguishable.