internal controls communication

Question 1

when the auditor communicates material weaknesses of IC to mgmt, the auditor should request mgmt to include a written response in the auditor’s communiction

Answer 1

false

Question 2

when communicating material weaknesses in IC, the auditor does NOT include suggested corrective action for management’s consideration in the communication

Answer 2

true

Question 3

an auditor should communicate as a significant deficiency or material weakness, recurring operating losses that may indicate going concern problems

Answer 3

false

Question 4

an auditor should communicate as a significant deficiency or material weakness, lack of objectivity by those responsible for accounting decisions

Answer 4

true

Question 5

control deficiencies that are not significant deficiencies or material weaknesses should be communicated to those charge with governance

Answer 5

false

Question 6

the auditor may issue a written communication to management and those charged with governance that “no significant deficiencies were noted”

Answer 6

false

Question 7

in a communication on control related matters in an audit under the AICPA’s auditing standards, an auditor would not be permitted to express that “there are no significant deficiencies or material weaknesses in the design or operation of IC”

Answer 7

true