ASA 240 requires the auditor to communicate all errors, fraud, and illegal acts discovered during the audit to the client's audit committee.

Question

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ASA 240 primarily focuses on the auditor's responsibilities relating to fraud in an audit of financial statements. While it does require communication about fraud, it does not mandate the communication of all errors or illegal acts directly to the audit committee; the communication requirements for errors and illegal acts are covered under other standards and depend on their nature and materiality.

ASA 240 Requires the Auditor to Communicate All Errors, Fraud