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Questions and Answers
What is the purpose of communicating internal control related matters identified in an audit?
What is the purpose of communicating internal control related matters identified in an audit?
- To inform the public about the audit findings
- To communicate control deficiencies to management and those charged with governance (correct)
- To request additional information from the audited entity
- To provide feedback to the audit team
In the context of accounting policies, what does the communication process include?
In the context of accounting policies, what does the communication process include?
- Comparison of financial statements across industries
- Detailed analysis of all financial statement items
- Evaluation of employee performance
- Identification of financial statement items impacted by significant accounting policies (correct)
When communicating accounting policies, what should be considered regarding acceptable alternative policies?
When communicating accounting policies, what should be considered regarding acceptable alternative policies?
- They may include identification of affected financial statement items (correct)
- They should be ignored in the communication
- They are irrelevant to the communication process
- They don't affect financial statement items
What is the importance of balancing cost and benefit in determining accounting policies' appropriateness?
What is the importance of balancing cost and benefit in determining accounting policies' appropriateness?
In what situations should communication include changes in significant accounting policies?
In what situations should communication include changes in significant accounting policies?
What action is typically taken upon identifying control deficiencies considered significant weaknesses?
What action is typically taken upon identifying control deficiencies considered significant weaknesses?
What does the communication regarding accounting practices focus on?
What does the communication regarding accounting practices focus on?
When alternative accounting policies exist, what information may be provided in the communication?
When alternative accounting policies exist, what information may be provided in the communication?
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