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1.Alice, CPA, is auditing the financial statements of Lighthouse Inc., a non-issuer and has identified...

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Accounting

1.Alice, CPA, is auditing the financial statements of Lighthouse Inc., a non-issuer and has identified weaknesses in Lighthouse's internal controls that are less severe than material weaknesses but important enough to merit attention by those charged with governance. (ie-significant deficiencies). Identify the appropriate action that Jones should take for each scenario. Jones is obligated to search for significant deficiencies during his test work.

Alice is obligated to search for significant deficiencies during his test work.

A.Always

B.Never

2.Alice, CPA, is auditing the financial statements of Lighthouse Inc., a non-issuer and has identified weaknesses in Lighthouse's internal controls that are less severe than material weaknesses but important enough to merit attention by those charged with governance. (ie-significant deficiencies). Identify the appropriate action that Jones should take for each scenario.

Alice should make his report on the significant deficiencies available to the stockholders.

A.Always

B.Never

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