Which of the Following Statements Regarding the Reporting of Critical

question 50

Multiple Choice

Which of the following statements regarding the reporting of critical audit matters (CAMs) under PCAOB guidance is incorrect?

• A)Matters that are material to the financial statements but do not relate to accounts or disclosures are not CAMs.
• B)If no CAMs arose during the audit,the audit report should not contain any reference to CAMs.
• C)The disclosure of CAMs under PCAOB guidance is similar to disclosure of KAMs under IAASB guidance.
• D)All of the above are incorrect.

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Definitions:

Government Corporation

A business owned by the government that operates with a degree of independence to provide services that could be commercial in nature.

Civil Service

The body of government employees who are employed on merit system principles, excluding military and political appointments.

Partisanship

Devotion or allegiance to a particular political party or cause, sometimes resulting in a polarized political environment.

Civil Service Commission

A government body charged with overseeing the hiring and management of federal government employees to ensure a merit-based, non-partisan civil service.