The auditor need not inform the audit committee about adjustments arising from the audit that were considered to be material.

Question

Quizplus · Accepted Answer

The auditor is required to inform the audit committee of all material adjustments that arise from the audit. This is because material adjustments can have a significant impact on the financial statements and, therefore, need to be brought to the attention of the audit committee. Failing to inform the audit committee of material adjustments would be a breach of the auditor's responsibility to communicate with the audit committee.

The Auditor Need Not Inform the Audit Committee About Adjustments