M11-Other Communications

Question 1

The group engagement teams should communicate to the component auditors the significant risks of material misstatement of the group financial statements that are relevant to the work of the component auditor. (true or false)

Answer 1

true

Question 2

A CPA owes clients a duty of confidentiality which generally prohibits the CPA from revealing a client’s confidential information without the client’s consent. A client’s mail clerk would not have sufficient authority to validly authorize disclosure. (true or false)

Answer 2

true