The auditor comes through several matters during the audit process which are required to be informed to the management of the client. However, the auditor needs to choose the appropriate level of the management to communicate the matters. Some matters may be too crucial that those cannot be communicated to the management, due to management involvement or fraud. In such cases the auditor should communicate the matter to those charged with governance. The auditor is responsible to communicate relevant matters to those charged with governance people on timely basis. To choose: The case when auditor is responsible to disclose fraud to parties other than entity’s senior management and its auditor committee.

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Chapter 4, Problem 4.21MCQ

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The auditor comes through several matters during the audit process which are required to be informed to the management of the client. However, the auditor needs to choose the appropriate level of the management to communicate the matters. Some matters may be too crucial that those cannot be communicated to the management, due to management involvement or fraud. In such cases the auditor should communicate the matter to those charged with governance. The auditor is responsible to communicate relevant matters to those charged with governance people on timely basis.

To choose: The case when auditor is responsible to disclose fraud to parties other than entity’s senior management and its auditor committee.

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