Which of the following items should an auditor communicate to those charged with governance in a publicly traded company?
A) Significant audit adjustments recorded by the company and management's consultation with other accountants about significant accounting matters.
B) Significant audit adjustments recorded by the company but not management's consultation with other accountants about significant accounting matters.
C) Management's consultation with other accountants about significant accounting matters but not significant audit adjustments recorded by the company.
D) Neither significant audit adjustments recorded by the company nor management's consultation with other accountants about significant accounting matters.

Question

Quizplus · Accepted Answer

The auditor should communicate significant audit adjustments recorded by the company and management's consultation with other accountants about significant accounting matters to those charged with governance in a publicly traded company, as these are important matters that can affect the financial statements and governance of the company. Option B does not include management's consultation with other accountants, which is also an important matter to communicate. Option C only includes management's consultation with other accountants but does not include significant audit adjustments, which is also important to communicate. Option D does not include either of the important matters that should be communicated to those charged with governance.

Which of the Following Items Should an Auditor Communicate to Those