Which of the following statements, if true, could justify an auditor's decision not to report governance-related control deficiencies to the audit committee?
A) Management plans to initiate corrective action.
B) The board of directors has a separate corporate governance committee.
C) The amounts and the potential risks associated with the deficiencies are not material to the overall organization.
D) Governance issues are complex and the auditor should rely on management's analysis of the extent of the problem.

Question

Quizplus · Accepted Answer

If the amounts and potential risks associated with the deficiencies are not material to the overall organization, the auditor may decide that it is not necessary to report them to the audit committee, as they do not significantly impact the financial statements or governance.

Which of the Following Statements, If True, Could Justify an Auditor's