[Anonymous]

Which of the following is a false statement regarding communications to management and others that fraud or noncompliance with laws and regulations may have occurred?

Incorrect A.

The accountant need not report matters that are clearly inconsequential.

B.

When matters regarding fraud or noncompliance involve senior management, the accountant should report the matter to an individual or group at a higher level with the entity, such as a manager (owner) or the board of directors.

C.

The communication must be in writing.

D.

When matters regarding fraud or noncompliance involve the owner of the business, the accountant should consider resigning from the engagement.

C. Correct. The communication regarding fraud or noncompliance with laws and regulations may be oral or written. If the communication is oral, the accountant should document it.

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Well if the auditor documents the communication, wouldn’t that be in writing?

[Anonymous]

Well if the auditor documents the communication, wouldn't that be in writing?

________________________________________________________________

I believe this is inferring that the auditor documents the communication in the work papers / audit evidence. Not that the auditor documents the discussion and issues the documented evidence to the client.

The auditor is required to document (in the work papers) the communication of fraud to management.

[mla1169]

If the auditor communicates orally, they document it for their own purposes-the documentation isn't necessarily provided to the client. So nothing has to be given in writing to the client.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Author]

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