Legal precedent requires the auditor to report not just to management but to an appropriate level of management, any significant matters identified as a result of audit procedures performed. Which of the following cases is the relevant legal precedent?
A) Pacific Acceptance.
B) AWA.
C) Kingston Cotton Mills.
D) Esanda Finance.

Question

Quizplus · Accepted Answer

The AWA case is relevant because it established that auditors have a duty to report significant matters not just to management but to an appropriate level of management, ensuring that those with the authority to take corrective action are informed.

Legal Precedent Requires the Auditor to Report Not Just to Management