Question

Which of the following statements is most correct about an auditor's required communication with management and those charged with corporate governance?

A) The auditor is required to inform those charged with governance about significant errors discovered and subsequently corrected by management.
B) Any significant matter reported to those charged with governance must also be communicated to management.
C) Communication is required before the audit report is issued.
D) The auditor does not have any requirement to communicate with anyone other than the company's senior management.

Answer 1

The most correct statement is that the auditor is required to inform those charged with governance about significant errors discovered and subsequently corrected by management.

Step-by-step explanation:

The most correct statement about an auditor's required communication with management and those charged with corporate governance is:

1. A) The auditor is required to inform those charged with governance about significant errors discovered and subsequently corrected by management.

According to auditing standards, auditors are required to communicate significant errors that have been discovered and corrected by management to those charged with governance. This communication ensures that the governing body of the organization is aware of any errors and has an opportunity to evaluate the effectiveness of management's actions in identifying and correcting the errors.