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:

External Validity

The degree to which a study's findings can be applied to different contexts and diverse individuals.

Generalizability

The extent to which research findings and conclusions can be applied to broader populations or different contexts beyond the study sample.

Intervention

An action or process of intervening, usually aimed at producing some kind of change or improvement in a situation.

Diagnosed

The determination of the nature of a disease or condition by examination of symptoms and signs or by other tests.