Question

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

a. Any matters communicated to those charged with governance are also required to be communicated to the entity's management.
b. The auditor is required to inform those charged with governance about significant errors discovered by the auditor and subsequently corrected by management.
c. The auditor does not have any requirement to communicate with anyone outside of management.
d. Weaknesses in internal control previously reported to those charged with governance are required to be communicated to those charged with governance after each subsequent audit until the weaknesses are corrected.

Answer 1

An auditor is required to communicate matters to both management and those charged with governance. Significant errors discovered by the auditor and subsequently corrected by management should be informed to those charged with governance. Weaknesses in internal control previously reported to those charged with governance should be communicated after each subsequent audit until they are corrected. Option d. is correct.

Step-by-step explanation:

Option a. Any matters communicated to those charged with governance are also required to be communicated to the entity's management, is correct about an auditor's required communication with management and those charged with governance.

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

Option d. Weaknesses in internal control previously reported to those charged with governance are required to be communicated to those charged with governance after each subsequent audit until the weaknesses are corrected.