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NEW QUESTION: 1
Which of the following best describes an auditor's responsibility with respect to communicating internal
control deficiencies of issuers?
A. 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.
B. 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.
C. 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.
D. 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.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
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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