The Handbook Section "Communication with Management of Matters Identified During the Financial Statement Audit" requires that:
A)All nontrivial misstatements are communicated to management in writing.
B)All nontrivial misstatements and possible illegal acts are communicated to management.
C)All serious control risks uncovered are communicated to management in writing.
D)Only frauds and illegal acts are communicated to management.

Question

Quizplus · Accepted Answer

The Handbook requires that all nontrivial misstatements and possible illegal acts identified during the audit are communicated to management, ensuring they are aware of significant issues that could affect the financial statements.