Which of the following matters is an auditor required to communicate to those charged with governance?
A) The basis for assessing control risk below the maximum.
B) The process used by management in formulating sensitive accounting estimates.
C) The auditor's preliminary judgments about materiality levels.
D) The justification for performing substantive procedures at interim dates.

Question

Quizplus · Accepted Answer

The process used by management in formulating sensitive accounting estimates is a matter that the auditor is required to communicate to those charged with governance, as it can significantly affect the financial statements. The other options are not mandatory communication matters required by the auditor.

Which of the Following Matters Is an Auditor Required to Communicate