Which of the following statements concerning material weaknesses and significant deficiencies is correct?

a. An auditor must communicate material weaknesses in writing, but may communicate other significant deficiencies orally instead of in writing.

b. All material weaknesses are significant deficiencies.

c. All significant deficiencies are material weaknesses.

d. An auditor should immediately report all material weaknesses and significant deficiencies discovered during an audit.

e. The auditor is prohibited from reporting any matter that does not rise to the level of a significant deficiency in the auditors management letter.

When auditing a material element of a public company's financial statements under PCAOB auditing standards, which of the following activities are required? ["Yes" means required; "No" means not required.]

Perform Risk Assessment Perform Tests of Perform Substantive

Procedures Control Procedures

a. Yes Yes No

b. Yes Yes Yes

c. Yes No Yes

d. Yes No No

e. No No Yes