Which of the Following Statements Is Most Correct About an Auditor's

question 115

Multiple Choice

Which of the following statements is most correct about an auditor's required communication with management and those charged with corporate governance?

• A)The auditor is required to inform those charged with governance about significant errors discovered and subsequently corrected by management.
• B)Any significant matter reported to those charged with governance must also be communicated to management.
• C)Communication is required before the audit report is issued.
• D)Auditor does not have any requirement to communicate with anyone other than the company's senior management.

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Definitions:

Intrinsic Motives

Internal drives that inspire behavior based on internal rewards, satisfaction, or personal fulfillment.

Extrinsic Motives

Motivation driven by external rewards or pressures rather than internal satisfaction or fulfillment.

Polygraph

A device that measures and records several physiological indices such as blood pressure, pulse, respiration, and skin conductivity while the person is asked and answers a series of questions.

Physiological Functioning

Refers to the normal operation of physical and biological processes in living organisms.