What is the purpose of having required auditor communications between the external auditor and the audit committee?

What is the purpose of having required auditor communications between the external auditor and the audit committee?

. 15 The auditor should communicate to the audit committee matters that are difficult or contentious for which the auditor consulted outside the engagement team and that the auditor reasonably determined are relevant to the audit committee’s oversight of the financial reporting process.

Which of the following is correct regarding the communication between successor and predecessor auditors?

Which of the following is correct regarding the communication between successor and predecessor auditors? The successor auditor should request permission from the prospective client to make an inquiry of the predecessor auditor.

What is the responsibility of a successor auditor with respect to communication?

5-2 What is the responsibility of a successor auditor with respect to communicating with the predecessor auditor in connection with a prospective new audit client? The successor auditor should contact the predecessor auditor regardless of whether the prospective client authorizes contact. d.

How do you audit beginning balances?

Illustrative Test of Balances Audit Procedures for Opening Balances

1. Examine bank-statement reconciliations for the last month of the prior period and the first month of the current period for unusual entries.
2. Reconcile the aged trial balance to the general ledger at the end of the prior period.

What information and to who is the auditor required to communicate at the conclusion of an audit?

The auditor should communicate to the audit committee an overview of the overall audit strategy, including the timing of the audit,7/ and discuss with the audit committee the significant risks identified during the auditor’s risk assessment procedures.

What is the purpose of the engagement letter?

An engagement letter is a written agreement that describes the business relationship to be entered into by a client and a company. The letter details the scope of the agreement, its terms, and costs. The purpose of an engagement letter is to set expectations on both sides of the agreement.

When do successor auditors need to communicate with predecessor auditors?

Answer: Auditing standards require a successor auditor to communicate with the predecessor auditor whenever accepting a client that has been previously audited. The purpose of the communication is to help the successor auditor evaluate whether to accept the engagement.

Which is the primary objective of communication in management?

What is Communication – Objectives . The primary objective of communication in management is to convey information—instructions, policies, procedures, decisions, etc., so the listener will hear, read, understand what is said, agree and accept the message, and react as intended by the manager or sender of communication.

What is the purpose and importance of communication?

The purpose of communication understands of information. Whatever one wants to say to someone should be clearly understood by him else the very purpose of the communication would be defeated.

Why is it important to communicate with your subordinates?

The managers must know the ideas, thoughts, comments, reactions and attitudes of their subordinates and subordinates should know the same from the lowest level staff of their respective departments. Effective communication is vital for efficient management and to improve industrial relations.