Question

As the audit of Halley Enterprises draws to its conclusion, the auditors, Edmund CPAs are discussing and preparing a document to deliver significant audit findings to the firm’s senior management. Which of the following are potential findings that an auditor may include in such a communication?(Select all that apply.) (min two of them are right)

A) The auditors’ assessment of the appropriateness of significant accounting policies currently being used by management and the firm.

B) A record of significant findings or issues that the auditors noted during the course of the audit.

C) A list of all misstatements that the client corrected, having been alerted to them by the auditors.

D) The types of substantive and analytical procedures as part of the audit, for management’s records.

Answer 1

An auditor may include the auditors' assessment of accounting policies and a record of significant findings in audit findings communication.

Step-by-step explanation:

When preparing a document to deliver significant audit findings to senior management, potential findings that an auditor may include are:

1. The auditors' assessment of the appropriateness of significant accounting policies currently being used by management and the firm. This is important because it allows management to evaluate the effectiveness of their current policies and make any necessary adjustments.
2. A record of significant findings or issues that the auditors noted during the course of the audit. This helps senior management understand any areas of concern or potential risks in the company's financial statements or internal controls.

Therefore, options A and B are potential findings that an auditor may include in such a communication.