Significant Deficiencies Are Matters That Come to an Auditor's Attention

question 82

Multiple Choice

Significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's audit committee because they represent

• A) Disclosures of information that significantly contradict the auditor's going concern assumption.
• B) Material fraud or illegal acts perpetrated by high-level management.
• C) Significant design flaws in internal controls or poor implementation of internal controls.
• D) Manipulation or falsification of accounting records or documents from which financial statements are prepared.

---

Definitions:

Modern Management

Contemporary approaches and practices in managing and leading organizations, emphasizing innovation, flexibility, and embracing change.

Organizations

Entities comprising multiple people working together towards a common goal, structured to facilitate coordination and effort.

Systems

A set of interconnected components working together towards a common goal, often referring to complex entities in technology, nature, or organizations.

Evidence-Based Management

The conscientious use of current best evidence in managerial decision making.