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.

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Definitions:

Business Plan

A business plan is a detailed document outlining the goals, strategies, financial forecasts, and operational plans for starting and operating a business, serving as a roadmap for business success.

Start-Up Business

An entrepreneurial venture in its initial stage of operations, often characterized by innovation, ambition, and scalability.

Financing

The process of obtaining the necessary funds needed for an operation, project, or investment.

Executive Summary

A brief section at the beginning of a document that provides an overview of the main points and conclusions.