If the auditors decide to present separate reports on the entity's financial statements and internal control over financial reporting,which of the following reports should be modified to refer to the other report?
A) Option A
B) Option B
C) Option C
D) Option D

Question

If the auditors decide to present separate reports on the entity's financial statements and internal control over financial reporting,which of the following reports should be modified to refer to the other report? 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Quizplus · Accepted Answer

If the auditors decide to present separate reports on the entity's financial statements and internal control over financial reporting, the report on the entity's financial statements should be modified to refer to the report on internal control over financial reporting (Option A). This is because the report on internal control over financial reporting provides information on the adequacy of the entity's internal control to support the preparation of reliable financial statements. Therefore, it is important to cross-reference the report on financial statements with the report on internal control over financial reporting. Options B, C, and D are not relevant in this context.

If the Auditors Decide to Present Separate Reports on the Entity's