Which of the Following Statements Regarding Auditor Communication with Audit

question 22

Multiple Choice

Which of the following statements regarding auditor communication with audit committees is FALSE?

• A)Both the auditor and management should be present in meetings with the audit committee to discuss these reports,which may be written or oral.
• B)The auditor and management should,in advance,review the information to be covered with the audit committee.
• C)On all matters,management should report to the audit committee first,and the auditor then comments.
• D)When the auditor communicates in writing,the report should indicate that it is intended solely for use by the audit committee.

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Definitions:

Cost of Goods Manufactured

The total production cost of goods completed during an accounting period.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, usually comprising the balance sheet, income statement, and cash flow statement.

Financial Accounting

Financial Accounting is the field focused on the collection, analysis, and reporting of financial transactions pertaining to a business, resulting in the production of financial statements.

Managerial Accounting

The practice of identifying, measuring, analyzing, and interpreting financial information for the pursuit of an organization's goals.