Question

The external auditor is required to make a number of important communications to the audit committee during or at the end of the audit engagement.

a. True
b. False

Answer 1

The statement is true; external auditors must communicate important aspects of the audit to the audit committee during the engagement process.

Step-by-step explanation:

The statement that the external auditor is required to make a number of important communications to the audit committee during or at the end of the audit engagement is true. It is the auditor's responsibility to communicate on various aspects of the audit, including but not limited to the auditor's responsibilities under the audit standards, significant accounting policies and practices, significant audit findings, and any internal control deficiencies identified. This communication can take the form of a formal written report or through regular meetings and discussions with the committee.