The Auditor Learned the Following in the Course of an Audit

question 2

Multiple Choice

The auditor learned the following in the course of an audit engagement. Which of the items, discovered by the auditor, need NOT be communicated to the audit committee?

• A) The theft of several items of inventory by warehouse employees.
• B) Management's significant accounting policies.
• C) Significant audit adjustments recommended by the auditors.
• D) All of these items should be communicated to the audit committee.

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Definitions:

Creativity

The ability to generate new ideas, solutions, or innovative approaches to problems.

Diversity

Describes the inclusion of individuals from a wide range of social, ethnic, and cultural backgrounds in a group or organization.

Individual Differences

Variations among individuals in their behavior, emotional processes, and psychological characteristics.

English-sounding Names

Names that are perceived to be typical or originating from English-speaking countries, often discussed in studies of bias and social perceptions.