Which of the following best describes an auditor's responsibility with respect to communicating internal control deficiencies of issuers?
A.
The auditor is required to communicate all deficiencies in internal control to management, deficiencies that constitute a significant deficiency to the audit committee, and deficiencies that constitute a material weakness to the full board of directors.
B.
The auditor is required to communicate all deficiencies in internal control to management, and deficiencies that constitute a significant deficiency or a material weakness to management and the audit committee.
C.
The auditor is not required to communicate control deficiencies to management or the audit committee unless they constitute a significant deficiency or a material weakness.
D.
The auditor is not required to communicate control deficiencies or significant deficiencies to management or the audit committee, but must communicate material weaknesses to both management and the audit committee.
Suggested Answer:B🗳️
Choice "B" is correct. The auditor is required to communicate all deficiencies in internal control to management, and deficiencies that constitute a significant deficiency or a material weakness to management and the audit committee. Choice "A" is incorrect. There is no requirement that material weaknesses be communicated to the full board of directors. Choice "C" is incorrect. The auditor is required to communicate all deficiencies in internal control to management. Choice "D" is incorrect. The auditor is also required to communicate significant deficiencies to management and the audit committee.
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