Prior to issuing a report on internal controls over financial reporting,an auditor is required to
A) Perform procedures sufficient to identify all control deficiencies.
B) Communicate to management, in writing, all control deficiencies previously included in written communication from the internal auditors.
C) Communicate to management, in writing, all control deficiencies identified during the audit and inform the audit committee when such a communication has been made.
D) Represent that no significant deficiencies were noted during the audit of internal control.

Question

Quizplus · Accepted Answer

Prior to issuing a report on internal controls over financial reporting, an auditor is required to communicate to management, in writing, all control deficiencies identified during the audit and inform the audit committee when such a communication has been made. This is in accordance with the requirements of auditing standards. Therefore, option C is the correct choice. Option A is incorrect because the auditor's responsibility is not to identify all control deficiencies, but to perform procedures sufficient to identify material weaknesses. Option B is incorrect because the auditor is only required to communicate the control deficiencies identified during the audit, not those previously communicated by the internal auditors. Option D is incorrect because the auditor is required to report any significant deficiencies or material weaknesses that are identified during the audit.

Prior to Issuing a Report on Internal Controls Over Financial