Which of the Following Items Should an Auditor Communicate to Those

question 23

Multiple Choice

Which of the following items should an auditor communicate to those charged with governance in a publicly traded company?

• A) Significant audit adjustments recorded by the company and management's consultation with other accountants about significant accounting matters.
• B) Significant audit adjustments recorded by the company but not management's consultation with other accountants about significant accounting matters.
• C) Management's consultation with other accountants about significant accounting matters but not significant audit adjustments recorded by the company.
• D) Neither significant audit adjustments recorded by the company nor management's consultation with other accountants about significant accounting matters.

---

Definitions:

Hypothesis

A hypothesis is a proposed explanation or educated guess for a phenomenon, based on observation, that can be tested through further investigation and experimentation.

Conclusion

The end or finish of an event, process, or text, often summarizing the main points or outcomes.

Legal Competence

The ability of an individual to understand and participate in legal proceedings, or to make legally recognized decisions.

Defense Counsel

A lawyer who represents a defendant in legal proceedings, protecting their rights and interests.