The auditor must communicate in writing all significant deficiencies and material weaknesses to management and the audit committee.The written communication from the auditor should include:
A)a definition of a significant deficiency and a material weakness
B)a statement that the objective of the audit is to report on the financial statements and to provide assurance on internal controls
C)a statement that the communication is intended solely for the use of stockholders,the board of directors,the audit committee,and management
D)a statement that there is no such thing as absolute assurance

Question

Quizplus · Accepted Answer

The auditor must provide a definition of significant deficiency and material weakness to ensure that management and the audit committee understand the severity of the issues identified during the audit. This will help them address the identified issues and improve the internal controls of the company. Option B is incorrect because while it is true that the objective of the audit is to report on the financial statements and provide assurance on internal controls, it is not a required element of the communication. Option C is incorrect because the communication is not exclusively for the use of stockholders, the board of directors, and the audit committee, but also for management. Option D is incorrect because while it is true that there is no such thing as absolute assurance, it is not a required element of the communication.

The Auditor Must Communicate in Writing All Significant Deficiencies and Material