Which of the following statements is correct about an auditor's required communication with management and those charged with governance?
A) Any matters communicated to those charged with governance are also required to be communicated to the entity's management.
B) The auditor is required to inform those charged with governance about significant errors discovered by the auditor and subsequently corrected by management.
C) The auditor does not have any requirement to communicate with anyone outside of management.
D) Weaknesses in internal control previously reported to those charged with governance are required to be communicated to those charged with governance after each subsequent audit until the weaknesses are corrected.

Question

Quizplus · Accepted Answer

The correct statement is that the auditor is required to inform those charged with governance about significant errors discovered by the auditor and subsequently corrected by management. This is in accordance with International Standard on Auditing (ISA) 260, which outlines the auditor's responsibility to communicate with those charged with governance about matters related to the audit. While weaknesses in internal control previously reported to those charged with governance do need to be followed up on, they only need to be communicated after subsequent audits if they have not been corrected. Choice A is incorrect as not all matters communicated to those charged with governance are required to be communicated to management. Choice C is incorrect as the auditor is required to communicate with both management and those charged with governance.

Which of the Following Statements Is Correct About an Auditor's