The auditor is required to communicate certain matters related to the audit to those charged with governance in the company.Which of the following items should be communicated to those charged with governance?
A)the auditor's responsibility under generally accepted accounting principles
B)significant accounting policies
C)auditor judgments and accounting estimates
D)managements' adjustments
E)auditor's judgments about the quality of the entity's accounting principles
F)both A and C
G)both B and E
H)both D and E

Question

Quizplus · Accepted Answer

Significant accounting policies and the auditor's judgments about the quality of the entity's accounting principles should be communicated to those charged with governance. The auditor's judgments and accounting estimates are also important matters to be communicated. Managements' adjustments are communicated to management, but not necessarily to those charged with governance. The auditor's responsibility under generally accepted accounting principles is well-known and does not need to be communicated separately to those charged with governance.

The Auditor Is Required to Communicate Certain Matters Related to the Audit