The auditor is required to communicate certain matters related to the audit to those charged with governance in the company.Which of the following items should be communicated to those charged with governance?
A)significant deficiencies and material weaknesses identified in internal controls over the financial statements
B)other information in documents containing financial information
C)agreements with management
D)consultation with auditor's attorney
E)major issues discussed with management prior to retention
F)both A and B
G)both A and E
H)both C and D

Question

Quizplus · Accepted Answer

The auditor is required to communicate significant deficiencies and material weaknesses identified in internal controls over the financial statements as well as major issues discussed with management prior to retention to those charged with governance. These items are covered in choices A and E. The other options, such as agreements with management and consultation with the auditor's attorney, are not typically communicated to those charged with governance.

The Auditor Is Required to Communicate Certain Matters Related to the Audit