An Auditor Is Required to Establish an Understanding with a Client

Multiple Choice

An auditor is required to establish an understanding with a client regarding the services to be performed for each engagement. This understanding generally includes:

A) The auditor's responsibility for determining the preliminary judgments about materiality and audit risk factors.
B) Management's responsibility for identifying mitigating factors when the auditor has doubt about the entity's ability to continue as a going concern.
C) The auditor's responsibility for ensuring that those charged with governance are aware of any significant deficiencies in internal control that come to the auditor's attention.
D) Management's responsibility for providing the auditor with an assessment of the risk of material misstatement due to fraud.