8 Questions
What is the purpose of communicating internal control related matters identified in an audit?
To communicate control deficiencies to management and those charged with governance
In the context of accounting policies, what does the communication process include?
Identification of financial statement items impacted by significant accounting policies
When communicating accounting policies, what should be considered regarding acceptable alternative policies?
They may include identification of affected financial statement items
What is the importance of balancing cost and benefit in determining accounting policies' appropriateness?
It considers the need to provide information versus cost, benefiting users
In what situations should communication include changes in significant accounting policies?
When there are initial selections or changes in such policies
What action is typically taken upon identifying control deficiencies considered significant weaknesses?
Communication in writing to management and those charged with governance
What does the communication regarding accounting practices focus on?
Appropriateness of accounting policies to the entity's circumstances
When alternative accounting policies exist, what information may be provided in the communication?
Identification of financial statement items affected by policy choices
Test your knowledge on the auditor's expectation of two-way communication and matters that should be communicated to auditors, such as strategic decisions, fraud suspicions, and concerns about senior management integrity. Explore the process for taking action on communicated matters.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
