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

question 2

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)significant deficiencies and material weaknesses identified in internal controls over the financial statements
• B)other information in documents containing financial information
• C)agreements with management
• D)consultation with auditor's attorney
• E)major issues discussed with management prior to retention
• F)both A and B
• G)both A and E
• H)both C and D

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Definitions:

Industries

Broad categories that encompass various companies and organizations involved in the production of goods and services in specific areas of the economy.

Infant Industry Theory

A theory which states that certain emerging industries need to be protected and nurtured for a period of time or they will be unable to compete against established foreign firms.

Neo-Mercantilism

An economic strategy emphasizing national economic policies that restrict imports and promote domestic industries through tariffs, subsidies, and other protectionist measures.

Foreign Competition

The competition that domestic companies face from abroad, often referring to the goods and services offered by companies located in other countries.