[Anonymous]

NINJA Question –

OK, I’m about to dump this because it’s eating up a ton of time, but the answers to the research SIM’s in Ninja don’t seem to agree with what I come up with, several times now. I can’t seem to find out why I’m wrong.

Here’s the section in AU-C 265

During an audit engagement, the auditor may discover matters related to the entity’s internal control that should be reported to the entity’s audit committee. These matters are known as significant deficiencies or material weaknesses. What section and paragraph of the AICPA’s Codification of Statements on Auditing Standards (clarified standards) require that such matters be reported to those charged with governance?

Communication of Deficiencies in Internal Control

.11

The auditor should communicate in writing to those charged with gov-

ernance on a timely basis significant deficiencies and material weaknesses iden-

tified during the audit, including those that were remediated during the audit.

(Ref: par. .A15–.A20 and .A28)

The SIM answer is referring to one of the reference paragraphs AU-C 265.15

Communication of Significant Deficiencies and Material Weaknesses

to Those Charged With Governance (Ref: par. .11)

.A15

Communicating significant deficiencies and material weaknesses in

writing to those charged with governance reflects the importance of these mat-

ters and assists those charged with governance in fulfilling their oversight re-

sponsibilities. Section 260 establishes relevant considerations regarding com-

munication with those charged with governance when all of them are involved

in managing the entity.

Now is the problem here, and it’s not unique to NINJA by the way, that the AICPA isn’t actually releasing these types of questions and people are just drafting them themselves.

Not that the NINJA answer is wrong, but it’s no more right than the original reference.