Which of the following is true regarding significant deficiencies in internal control?

Question

Quizplus · Accepted Answer

Choice "B" is correct. The auditor is required to communicate to management and to those charged with governance (the audit committee) any significant deficiencies in internal control that the auditor observes. Choice "A" is incorrect. The auditor is not obligated to search specifically for significant deficiencies in internal control. Choice "C" is incorrect. Significant deficiencies in internal control are not typically included in the financial statements, as they relate to controls and not to the presentation and disclosure of financial information. Choice "D" is incorrect. Significant deficiencies in internal control are not typically included in the footnotes to the financial statements, as they relate to controls and not to the presentation and disclosure of financial information.

Which of the Following Is True Regarding Significant Deficiencies in Internal