The auditor must communicate significant deficiencies in internal control only after the entire audit is complete to ensure the auditor has a sufficient understanding of the circumstances surrounding the deficiency.

Question

Quizplus · Accepted Answer

According to auditing standards, significant deficiencies in internal control should be communicated to those charged with governance and management as soon as they are discovered during the course of the audit. Delaying the communication until the entire audit is complete may result in increased risk of material misstatement and prevent prompt corrective actions.

The Auditor Must Communicate Significant Deficiencies in Internal Control Only