Choice "D" is correct. The auditor should separately identify significant deficiencies and material weaknesses.
Choice "c" is incorrect. Not all significant deficiencies are material weaknesses.
Choice "b" is incorrect. The auditor is not obligated to search for significant deficiencies. The auditor is obligated to communicate to the client any significant deficiencies identified while auditing the financial statements.
Choice "a" is incorrect. The auditor is obligated to re-communicate significant deficiencies each year, even if management has acknowledged its understanding of such deficiencies.
