If an internal control exception is identified, the auditor_______.
A)must use their professional judgment to determine if the exception is a control deficiency, a significant deficiency, or a material weakness
B)must use published frameworks to determine if the exception is a control deficiency, a significant deficiency, or a material weakness
C)should notify the Securities and Exchange Commission (SEC) within 14 days
D)should consider withdrawing from the engagement

Question

Quizplus · Accepted Answer

When an internal control exception is identified, the auditor must use their professional judgment to determine the type and severity of the exception. This determination will help the auditor decide on the appropriate response, which could include performing additional testing or modifying the audit opinion. The auditor is not required to use published frameworks or notify the SEC, and withdrawing from the engagement should only be considered in extreme circumstances.

If an Internal Control Exception Is Identified, the Auditor_______