SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

AUD Prep

» Start this Course
(Practice similar questions for free)
Question:

FYI ICFR under PCAOB standards Reporting on Internal Control over Financial Reporting Separate or Combined Reports— 1. The auditor may choose to issue a separate or combined report on the Combined Report —An unqualified report on the financial statements and on ICFR consists of five paragraphs: (1) introduction; (2) scope; (3) definition; (4) inherent limitations; and (5) opinion. Separate Reports—The auditor should add an additional paragraph to the audit report on the financial statements that references the report on ICFR; and the auditor should add an additional paragraph to the report on ICFR that references the audit report on the financial statements. Report Date—If separate reports are issued, they should be dated the same (the date as of which the auditor has obtained sufficient competent evidence).

Author: Monique Tyler



Answer:

If One (or More) Material Weakness Exists—The auditor must express an adverse opinion (unless there is a scope limitation). 1. When expressing an adverse opinion—The auditor's report must include the definition of a material weakness and refer to management's assessment of the material weakness. (If not included in management's assessment, the auditor's report should state that fact.) 2. Should determine the effect the adverse opinion on ICFR has on the opinion on the entity's financial statements. 3. If There is a Scope Limitation—The auditor should disclaim an opinion or withdraw from the engagement.


0 / 5  (0 ratings)

1 answer(s) in total