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Which of the following best describes the responsibility of the auditor to report significant deficiencies and material weaknesses in an attest engagement to examine the effectiveness of a nonissuer's internal control?
Suggested Answer: A
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Choice 'a' is correct. In an attest engagement to examine the effectiveness of an entity's internal control, the auditor must communicate both significant deficiencies and material weaknesses to management and those charged with governance.
Choice 'b' is incorrect. The auditor is required to communicate significant deficiencies.
Choices 'c' and 'd' are incorrect. Both significant deficiencies and material weaknesses are required to be communicated to management and those charged with governance.
13 comments · newest first
DA
Darrin
11 months ago
Pretty sure it's A, but I guess it depends on the specific engagement.
SH
Shaunna
11 months ago
I don't think they need to report everything, option D seems plausible.
DO
Doyle
12 months ago
Wait, are you sure about that? I thought it was just material weaknesses.
JA
Jacquelyne
12 months ago
Totally agree, option A is the way to go!
LA
Lasandra
12 months ago
The auditor must communicate both significant deficiencies and material weaknesses.
LE
Leah
1 year ago
I’m leaning towards A as well, but I remember there being some nuances about what needs to be communicated. It’s tricky!
TI
Tiara
1 year ago
I feel like I might be mixing up the definitions here. I thought significant deficiencies were also important, but I can't recall if they have to be reported.
TE
Teri
1 year ago
I remember practicing a question similar to this, and I think it was about material weaknesses being mandatory to report. So, maybe B is correct?
LA
Lai
1 year ago
I think the auditor has to report both significant deficiencies and material weaknesses, but I'm not entirely sure. It seems like A makes the most sense.
CH
Chaya
1 year ago
Hmm, I'm not totally sure about this one. The value proposition could be for the supplier, sponsor, or customer. I'll have to think it through carefully.
KA
Karima
1 year ago
This question seems straightforward, but I want to make sure I understand the order of the steps correctly.
KI
Kimbery
1 year ago
This looks like a tricky scope question. I'll need to carefully trace the variable references to determine the output.
EL
Elenore
1 year ago
This is a tough one, but I'm going to give it my best shot. I'll make sure to eliminate the unlikely options first.