Which of the Following Matters Is an Auditor Required to Communicate

question 73

Multiple Choice

Which of the following matters is an auditor required to communicate to those charged with governance?

• A) The basis for assessing control risk at low.
• B) The process used by management in formulating sensitive accounting estimates.
• C) The auditor's preliminary judgments about materiality levels.
• D) The justification for performing substantive procedures at interim dates.

---

Definitions:

Elastic Supply

The responsiveness of the quantity supplied of a good or service to a change in its price, with a high elasticity indicating that supply can adjust quickly to price changes.

Subsidy

A financial contribution provided by the government to support or promote a particular economic activity or sector.

Elastic Demand

A market condition where the demand for a product changes significantly in response to changes in price.

Inelastic Supply

Refers to a market scenario where the quantity supplied does not change significantly when the price of the product changes.