Gleim 9.1

To what degree, if at all, is a significant deficiency related to a material weakness?

It is less severe than a material weakness.

Under the AICPA's auditing standards, which of the following statements about an auditor's communication of significant control deficiencies is true?

An auditor's report on significant control deficiencies should include a restriction on the use of the report.

Which of the following statements about significant deficiencies and material weaknesses in internal control is true for an audit of a nonissuer?

An auditor may communicate significant deficiencies and material weaknesses during an audit or after the audit's completion

Which of the following is true regarding significant deficiencies and material weaknesses in control for a nonissuer?

Auditors should communicate them to management and those charged with governance.

An auditor's written communication of internal control related matters identified in an audit would be addressed to"those charged with governance," which would include the

Board of directors.

A secondary result of the auditor's understanding of internal control for a nonissuer is that the understanding may

Bring to the auditor's attention possible control conditions required to be communicated to the client.

The development of constructive suggestions to a client for improvements in its internal control is a

Desirable by-product of an audit engagement

Which of the following matters would an auditor most likely consider to be a significant deficiency or material weakness to be communicated to those charged with governance?

Evidence of a lack of objectivity by those responsible for accounting decisions.

8. Which of the following issues related to internal control over financial reporting are required to be communicated in writing to management and those charged with governance? I Deficiencies in internal control II Significant deficiencies III Material weaknesses

II and III only.

11. Which of the following circumstances would be inappropriate for the auditor to communicate to those charged with governance?

No significant deficiencies in internal control exist that would affect the financial statements.

Which of the following statements is true about the auditor's communication of a material weakness in internal control?

Suggested corrective action for management's consideration concerning a material weakness need not be communicated to the client.

A report on an issuer's integrated audit must include each of the following statements, except

The audit was conducted in accordance with AICPA standards.

Which of the following statements is true about significant deficiencies identified in an audit?

The auditor should identify those significant deficiencies considered to be material weaknesses.

An auditor is required to establish an understanding with a client regarding the services to be performed for each engagement. For an auditor of a nonissuer, this understanding generally includes

The auditor's responsibility for ensuring that management and those charged with governance are aware of any significant deficiencies or material weaknesses in control that come to the auditor's attention.

Which of the following best describes the responsibility of an auditor of a private entity with respect to significant deficiencies and material weaknesses under AU-C 265, Communication of Internal Control Related Matters Identified in an Audit?

The communication by the auditor must be in writing.

A CPA had previously communicated a significant control deficiency in connection with an audit of prior financial statements of a nonissuer. As of the current audit date, the deficiency has not been corrected. What communication should be made by the CPA?

The condition should be reported.

When communicating significant deficiencies in internal control noted in a financial statement audit of a nonissuer, the communication should indicate that

The purpose of the audit was to report on the financial statements, not to provide assurance on internal control

Which of the following representations should not be included in a written report on internal control related matters identified in an audit under the AICPA's auditing standards?

There are no significant deficiencies or material weaknesses in the design or operation of internal control.