Which of the following statements is correct concerning an auditor's required communication with those charged with governance?

Question

Quizplus · Accepted Answer

Choice "A" is correct. An auditor is required to communicate certain matters to those charged with governance, including disagreements with management about significant audit adjustments, whether or not satisfactorily resolved. Choice "B" is incorrect. Written communications should include a limitation on the use of the communication. Choice "C" is incorrect. The auditor is not required to distribute the report to management, especially since certain matters might be inappropriate for discussion with management. Choice "D" is incorrect. The auditor is not required to make the communication before the auditor's report on the financial statements is finalized, as long as the communication occurs on a timely basis. (Note, however, that for audits of issuers, the communication must be made before the auditor's report is filled with the SEC.)

Which of the Following Statements Is Correct Concerning an Auditor's