When the auditor identifies significant deficiencies in the design or operation of internal controls, it will be communicated to client's audit committee in the:
A) audit report.
B) management letter.
C) reportable conditions letter.
D) engagement letter.

Question

Quizplus · Accepted Answer

Significant deficiencies in internal controls are communicated to the client's audit committee through a reportable conditions letter, which specifically addresses issues found during the audit.

When the Auditor Identifies Significant Deficiencies in the Design or Operation