Which of the following is NOT a matter the auditor is required to report on by exception?

The correct choice highlights that the requirement for auditors to report by exception focuses on circumstances that are deviations from established norms or standards. When assessing the adequacy of accounting records, the auditor's role is to confirm whether the records maintained by the entity meet the necessary requirements for proper audit practice.

Saying that adequate accounting records have been kept reflects a positive affirmation and is part of the general reporting framework rather than an exception. This means it does not indicate an issue or deficiency. On the other hand, the other options involve negative findings or discrepancies that suggest problems in financial reporting or compliance with regulations, which are indeed matters that auditors are required to report on when encountered.

In summary, the formulation of the question targets the distinction between normal operations (like the maintenance of adequate accounting records) and exceptions (like issues with financial statements or disclosures), clarifying the basis for reporting requirements in the audit process.