Auditor's Communication Expectations Quiz
8 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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?

  • 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?

  • 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?

    <p>It considers the need to provide information versus cost, benefiting users</p> Signup and view all the answers

    In what situations should communication include changes in significant accounting policies?

    <p>When there are initial selections or changes in such policies</p> Signup and view all the answers

    What action is typically taken upon identifying control deficiencies considered significant weaknesses?

    <p>Communication in writing to management and those charged with governance</p> Signup and view all the answers

    What does the communication regarding accounting practices focus on?

    <p>Appropriateness of accounting policies to the entity's circumstances</p> Signup and view all the answers

    When alternative accounting policies exist, what information may be provided in the communication?

    <p>Identification of financial statement items affected by policy choices</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser