Significant Deficiencies Are Matters That Come to an Auditor's Attention

Multiple Choice

Significant deficiencies are matters that come to an auditor's attention and should be communicated to an entity's audit committee because they represent:

A) material frauds perpetrated by high-level management.
B) internal control deficiencies that could adversely affect a company's ability to initiate, record, process, or report external financial statements reliably.
C) flagrant violations of the entity's documented conflict-of-interest policies.
D) intentional attempts by client personnel to limit the scope of the auditor's field work.