Which of the Following Statements Is Correct Concerning an Auditor's

question 30

Multiple Choice

Which of the following statements is correct concerning an auditor's required communication with those charged with governance?

• A) This communication is required to occur before the auditor's report on the financial statements is issued.
• B) This communication should include management changes in the application of significant accounting policies.
• C) Any significant matter communicated to those charged with governance also should be communicated to management.
• D) Significant audit adjustments proposed by the auditor and recorded by management need not be communicated to those charged with governance.

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Definitions:

Time Period Assumption

An accounting principle that allows businesses to divide their activities into specific time periods, such as months, quarters, or years, for reporting purposes.