Which of these items,discovered by the auditor during the course of an audit engagement,need NOT be communicated to the audit committee?
A)The theft of several items of inventory by warehouse employees.
B)Management's significant accounting policies.
C)Significant audit adjustments recommended by the auditors.
D)Misstatements that are trivial in nature.

Question

Quizplus · Accepted Answer

Misstatements that are trivial in nature need not be communicated to the audit committee as they do not affect the financial statements significantly. Items A, B, and C are important and should be communicated to the audit committee as they are significant findings that could have material effects on the financial statements.

Which of These Items,discovered by the Auditor During the Course