An Auditor of a Company Finds That There Are Rare

question 43

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 is 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:

Strengthening Economies

Economies that are in the process of growing stronger, often through improvements in GDP, employment rates, and other economic indicators.

Plumbing Products

Items and materials used in the plumbing system installations and repairs, including pipes, faucets, fixtures, and fittings.

Short Run Exchange Rate Risk

The potential for investors to experience losses due to fluctuations in exchange rates in the short term.

Strengthening Economies

Describes the phase wherein economies are experiencing growth in GDP, employment rates, and productivity, indicating an overall improvement in economic health.