If the auditor obtains knowledge about subsequent events that might have a material and adverse effect on the internal control over the financial reporting process,he should
A)issue an adverse opinion on the effectiveness of internal controls over financial reporting
B)not consider the information as the subsequent period is beyond the reporting period
C)include this information in an "other matters" paragraph
D)include this information in an "emphasis of a matter" paragraph

Question

Quizplus · Accepted Answer

CSubsequent events that might have a material and adverse effect on the internal control over the financial reporting process can lead to an adverse opinion on the effectiveness of those controls, as they indicate that the controls may not be effective. Additionally, including this information in an "other matters" paragraph allows the auditor to communicate the relevance of these subsequent events to the users of the financial statements, providing them with a complete view of the factors affecting the company's internal control over financial reporting.

If the Auditor Obtains Knowledge About Subsequent Events That Might