Question

Which of the following is not true?

A) The auditor should not communicate with management until the audit of internal control over financial reporting is finished.

B) Written communication between the auditor and management about internal control over financial reporting should include the definitions of control deficiencies, significant deficiencies, and material weaknesses.

C) The auditor should not include in the audit report that no significant deficiencies were noted during an audit of internal control over financial reporting.

D) If fraud is discovered, the auditor must report it to the appropriate level of management.

Answer 1

Option A is not true. Communication with management is important during an audit of internal control over financial reporting.

Step-by-step explanation:

The correct answer is A) The auditor should not communicate with management until the audit of internal control over financial reporting is finished.

During an audit of internal control over financial reporting, it is important for the auditor to communicate with management throughout the process. This allows the auditor to gather necessary information, clarify any uncertainties, and address any potential issues that may arise. Therefore, option A is not true.

Options B, C, and D are all true statements. Written communication between the auditor and management should include the definitions of control deficiencies, significant deficiencies, and material weaknesses in order to ensure clear understanding. The auditor should not exclude significant deficiencies from the audit report. And if fraud is discovered, the auditor has a duty to report it to the appropriate level of management.