Auditors of both public companies and private entities _______.
A)have a responsibility to report internal control weaknesses to those charged with governance of the entity
B)have a responsibility to report internal control weaknesses directly to the SEC
C)have a responsibility to report internal control weaknesses to the internal audit function, for immediate rectification
D)have a responsibility to report internal control weaknesses directly to the shareholders of an entity, who in turn should address their concerns to management

Question

Quizplus · Accepted Answer

Auditors of both public and private entities have a responsibility to report any internal control weaknesses they identify to those charged with governance of the entity, such as the board of directors or audit committee. This allows the entity's leadership to take action to address the weaknesses and ensure that financial reporting is accurate and reliable. Reporting directly to the SEC or shareholders may not be appropriate or necessary in all cases.

Auditors of Both Public Companies and Private Entities _______