Which of the following statements is true regarding the auditor's communication with those charged with governance (the Audit Committee)?

Answer options:

The auditor is only required to communicate if material misstatements are found.

The auditor must communicate significant difficulties encountered during the audit.

All communications must be in writing.

The auditor must communicate the specific procedures to be performed in the fraud audit.

How to approach this question

Recall AU-C 260. Difficulties, Disagreements, and Deficiencies must be communicated.

Full Answer

B.The auditor must communicate significant difficulties encountered during the audit.✓ Correct

The auditor must communicate with those charged with governance regarding the planned scope and timing of the audit, significant findings (including difficulties), and auditor independence.

Common mistakes

Thinking all communications must be written (only some, like significant deficiencies, require writing).

Question 54 All questions Question 56

Practice the full CPA AUD Practice Exam

78 questions · hints · full answers · grading

More questions from this exam

Q01A CPA firm is auditing a large public company. The audit partner's spouse has just been promoted ...Hard Q02During the acceptance phase of a new audit engagement for a private company, the successor audito...Hard Q03A CPA firm is designing its system of quality control. Which of the following policies would most...Medium Q04An auditor is establishing an understanding with a client regarding the services to be performed ...Medium Q05Under the AICPA Code of Professional Conduct, which of the following fee arrangements is prohibit...Medium

View all 78 questions →