Significant deficiencies in internal control are first communicated by auditors to the:
A) Australian Securities Industry Commission (ASIC).
B) chief executive officer.
C) audit committee.
D) board of directors.

Question

Quizplus · Accepted Answer

Significant deficiencies in internal control are first communicated to the audit committee, who can then take action to address the issue. The CEO and board of directors may also be informed, but the audit committee is typically responsible for oversight of internal control and therefore the appropriate first point of communication. The ASIC is a regulatory body and may not necessarily be involved in the first communication of internal control deficiencies.

Significant Deficiencies in Internal Control Are First Communicated by Auditors