AS 1301 specifies that _______.
A)critical accounting policies and practices and critical accounting estimates must be communicated to the audit committee
B)significant and immaterial accounting policies and practices and critical accounting estimates must be communicated to the audit committee
C)the auditor should bill audit clients at distinct phases of the audit process
D)auditors should always consult with their own legal counsel before issuing an unmodified opinion

Question

Quizplus · Accepted Answer

AS 1301 specifies that critical accounting policies and practices and critical accounting estimates must be communicated to the audit committee. Therefore, option A is the correct choice. Option B is incorrect because immaterial accounting policies and practices need not be communicated to the audit committee. Option C is incorrect because there is no such requirement for billing audits clients at distinct phases of the audit process under AS 1301. Option D is incorrect because AS 1301 does not require auditors to always consult with their legal counsel before issuing an unmodified opinion.

AS 1301 Specifies That _______