When the auditor is engaged to report on the internal control structure, the auditor forms an opinion about management's assertion regarding:
A) the completeness of internal control.
B) the effectiveness of internal control.
C) the efficiency of internal control.
D) the completeness of transactions.

Question

Quizplus · Accepted Answer

When the auditor is engaged to report on the internal control structure, the auditor forms an opinion about the effectiveness of internal control. The auditor does not form an opinion on the completeness or efficiency of internal control, or the completeness of transactions. Management is responsible for asserting the completeness and efficiency of internal control, while completeness of transactions is generally covered in a separate audit engagement.

When the Auditor Is Engaged to Report on the Internal