|Posted: 25 May 2009 at 12:44 | IP Logged
This Q is from Becker's HW of CH5:
Which of the following statements is correct concerning significant deficiencies in internal control with respect to an audit of a nonissuer?
a. An auditor is required to search for significant deficiencies during an audit.
b. All significant deficiencies are also considered to be material weaknesses.
c. An auditor may communicate significant deficiencies during an audit or after the audit's completion.
d. An auditor may report that no significant deficiencies were noted during an audit.
I don't have problems eliminating a,b, and d, but I actually don't think c is correct based on my understanding of becker (2007)'s A5-34. Its E. 3. b. says: The auditor may communicate significant matters during the examination rather than after the examination is concluded. Also, in this question, becker selects C as the correct answer and gives the exact the same explanation as indicated in the book. But I think C actually says the opposite meaning... ...
Maybe it's a problem of my reading, but anyone can help me understand this? Thanks a lot!
It's amazing what you can accomplish if you do not care who gets the credits.