Question
16. Jefferson, CPA, has identified five significant deficiencies in internal control during the audit of Portico Industries, a public company, two of these conditions are
16. Jefferson, CPA, has identified five significant deficiencies in internal control during the audit of Portico Industries, a public company, two of these conditions are considered to be material weaknesses. The CPA communicates all of the five significant deficiencies to management. Which best describes Jeffersons communication requirements to the audit committee and the public?
A. Communicate the two material weaknesses to Porticos the audit committee and the public, but not the three significant deficiencies that are not material weaknesses.
B. Communicate the two material weaknesses to Porticos audit committee and the public, and the three significant deficiencies that are not material weaknesses to Porticos the audit committee and the public.
C. Communicate the two material weaknesses to Porticos audit committee and the public; and the three significant deficiencies that are not material weaknesses to Porticos audit committee, but not the public.
D. Communicate all five significant deficiencies to Porticos audit committee and the public without distinction among the deficiencies.
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