PCAOB Audit Standard No.2201 requires that ________.
A)an auditor issues a qualified opinion on all accounts that were not tested in their entirety
B)the audit partner should solely make the determination as to whether any material weaknesses have been identified as part of the audit
C)all companies with a market capitalization of $75,000,000 or more file documentation with the Securities and Exchange Commission (SEC) detailing all deficiencies identified as part of the audit
D)in an audit of ICFR, material weaknesses are reported to the public in the auditor report on ICFR

Question

Quizplus · Accepted Answer

PCAOB Audit Standard No.2201 requires that in an audit of ICFR (Internal Control over Financial Reporting), material weaknesses are reported to the public in the auditor report on ICFR. Choice A is incorrect as qualified opinions are only issued on specific accounts or financial statements, not all accounts that were not tested in their entirety. Choice B is incorrect as material weaknesses are identified by the audit team, not solely by the audit partner. Choice C is also incorrect as there is no requirement for companies to file documentation with the SEC detailing deficiencies identified as part of the audit; however, the auditor must communicate material weaknesses to management and those charged with governance.

PCAOB Audit Standard No.2201 Requires That ________