ASA 240 requires the auditor to communicate all irregularities, including fraud and illegal acts, to the audit committee:
A) only if the act is highly material.
B) only if the act is immaterial.
C) only if the act is material.
D) regardless of materiality.

Question

Quizplus · Accepted Answer

ASA 240 requires the auditor to communicate all irregularities, including fraud and illegal acts, to the audit committee regardless of materiality. The auditor has a responsibility to report any irregularities to the audit committee to enable them to take appropriate actions. The materiality of the irregularity does not change this requirement.

ASA 240 Requires the Auditor to Communicate All Irregularities, Including