The Auditor Is Required to Communicate Certain Matters Related to the Audit

question 42

Multiple Choice

The auditor is required to communicate certain matters related to the audit to those charged with governance in the company.Which of the following items should be communicated to those charged with governance?

• A)the auditor's responsibility under generally accepted auditing standards
• B)significant personnel policies
• C)managements' judgments and accounting estimates
• D)managements' adjustments
• E)auditor's judgments about the quantity of the entity's accounting principles
• F)both A and C
• G)both B and E
• H)both D and E

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Definitions:

Cultural Biases

The phenomenon where personal, societal, and cultural beliefs or values influence one's judgment or behavior, often unconsciously.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a standardized classification of mental disorders used by mental health professionals in the USA.

Schizophrenia

A chronic mental disorder that affects how a person thinks, feels, and behaves, characterized by delusions, hallucinations, disorganized speech, and impaired cognitive function.

African American

A racial or ethnic group in the United States with ancestry from any of the black racial groups of Africa.