Communications with those Charged With Governance Flashcards Preview

AUD > Communications with those Charged With Governance > Flashcards

Flashcards in Communications with those Charged With Governance Deck (12):
1

What does the term "those charged with governance" broadly interpret to encompass?

Board of directors and audit committee

2

What is a committee of the board of directors, generally made up of three to five members of the board who are "outside directors"?

Audit committee

3

Outside directors are individuals who are?

Neither employees nore part of management and who do not have a financial interest in the company

4

Many companies have established audit committees because?

SEC has strongly recommended this action, and the NYSE requires all companies listed on the exchange to have audit committees

5

What are the specific functions of the audit committee?

Selects and appoints the independent auditor and sets the audit fee, ensures that any recommendations made by the auditor are given proper attention, and evaluates the internal control of the company with the help of the independent auditor.

6

What is a key element in the auditor's communication with those charged with governance?

Communication with the audit committee

7

How many times should the auditor meet with the audit committee without management present?

At least once each year

8

Should those charged with governance also communicate relevant matters to the auditor?

Yes

9

Who should communications be made to if no formal audit committee exists?

Full board of directors

10

Significant audit findings should be communicated in writing or oral?

Writing

11

Should oral communications be documented?

Yes

12

For audits of issuers, communications are required to be made when?

Before issuance of the auditor's report