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

Question

Quizplus · Accepted Answer

When the auditor is engaged to report on internal controls, their opinion is regarding the effectiveness of internal control. This means that the internal control system in place is able to accomplish its objectives efficiently, safeguard assets, maintain the accuracy and completeness of financial information, and ensure that transactions comply with applicable laws and regulations. The auditor's opinion on the effectiveness of internal control helps users of financial statements determine the reliability of the information provided.

When the Auditor Is Engaged to Report on the Internal