Which of the following is correct with respect to control deficiencies discovered during an audit?
A) Auditors must communicate and recommend corrections relating to all material weaknesses in internal control to management.
B) All material weaknesses in internal control should be reported to the audit committee.
C) All such matters must be communicated to the audit committee and regulatory agencies.
D) All control deficiencies are also significant deficiencies.

Question

Quizplus · Accepted Answer

According to auditing standards, all material weaknesses in internal control should be reported to the audit committee. Auditors are not required to report all control deficiencies, only those that are material and could result in a misstatement of the financial statements. Not all control deficiencies are significant deficiencies or material weaknesses. The auditor's communication of control deficiencies should be directed to management, not regulatory agencies.

Which of the Following Is Correct with Respect to Control