Which of the following matters is an auditor required to communicate to those charged with governance?
A) The basis for assessing control risk at low.
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 auditor is required to communicate matters related to the process used by management in formulating sensitive accounting estimates to those charged with governance. This is because such estimates can significantly impact the financial statements and may involve significant management judgment and uncertainty. The other options listed are matters that are not required to be communicated to those charged with governance.

Which of the Following Matters Is an Auditor Required to Communicate