Auditors are required to communicate numerous issues to those charged with governance of the firm (i.e., the AC and BOD). Öne of the things auditors must convey is a listing of all material misstatements that have been corrected via adjusting entries by the client. If the client has corrected these issues, thus correcting the financial statements to be fairly presented under GAAP, do you believe it is necessary to inform the AC about these issues? Why or why not?

Auditors are required to communicate numerous issues to those charged with governance of the firm (i.e., the AC and BOD). Öne of the things auditors must convey is a listing of all material misstatements that have been corrected via adjusting entries by the client. If the client has corrected these issues, thus correcting the financial statements to be fairly presented under GAAP, do you believe it is necessary to inform the AC about these issues? Why or why not?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Auditors are required to communicate
numerous issues to those charged with
governance of the firm (i.e., the AC and BoD).
One of the things auditors must convey is a
listing of all material misstatements that have
been corrected via adjusting entries by the
client. If the client has corrected these issues,
thus correcting the financial statements to be
fairly presented under GAAP, do you believe it
is necessary to inform the AC about these
issues? Why or why not?

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