Which of These Items,discovered by the Auditor During the Course

question 25

Multiple Choice

Which of these items,discovered by the auditor during the course of an audit engagement,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)Misstatements that are trivial in nature.

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Definitions:

Defining Objectives

The process of establishing clear, specific, measurable, and achievable targets that an organization or individual aims to reach.

Setting Objectives

The process of establishing specific, measurable, achievable, relevant, and time-bound goals for an individual, team, or organization.

Planning

The process of making plans for something, especially by specifying goals, strategies, and actions to achieve those goals.

Stretch Goals

Performance targets that one must work extra hard and stretch to reach.