The Auditor May Decide to Communicate Certain Issues to the Audit

question 118

True/False

The auditor may decide to communicate certain issues to the audit committee of the board of directors at the conclusion of an audit to provide client service but is not required to do so.

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Definitions:

Savings Rate

The proportion of disposable income that is saved rather than spent on consumption.

Capital Flight

The massive outflow of capital from a country, often due to economic instability or the expectation of devaluation of its currency.

Financial Capital

Financial Capital refers to the funds provided by lenders (and investors) to businesses to purchase real capital equipment for producing goods/services.

Infrastructure

The fundamental physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise.