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

question 17

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)auditor judgments and accounting estimates
• D)managements' adjustments
• E)auditor's judgments about the quality of the entity's accounting principles
• F)both A and B
• G)both A and E
• H)both C and D

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Definitions:

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group falls, often used to compare scores across a population.

Mode

The value that appears most frequently in a data set, representing the most common or popular observation.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the values in the set differ from the mean.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together.