An Auditor Most Likely Would Be Responsible for Communicating Significant

Multiple Choice

An auditor most likely would be responsible for communicating significant deficiencies in the design of internal control:

A) To the Securities and Exchange Commission when the client is a publicly-held entity.
B) To specific legislative and regulatory bodies when reporting under Government Auditing Standards.
C) To a court-appointed creditors' committee when the client is operating under Chapter 11 of the Federal Bankruptcy Code.
D) To shareholders with significant influence (more than 20% equity ownership) when the significant deficiencies (reportable conditions) are deemed to be material weaknesses.