Which of the following is True regarding the auditor's opinion on the effectiveness of internal control?
A)The auditor is attesting to the effectiveness of internal controls as of the end of the fiscal year.
B)If the client remedies a material weakness before the end of the fiscal year,the auditor must still issue a qualified opinion or a disclaimer of opinion.
C)A scope limitation requires the auditor to issues an adverse opinion.
D)Section 404 requires that the auditor design the audit to detect all deficiencies in internal control.

Question

Quizplus · Accepted Answer

The auditor's opinion on the effectiveness of internal control attests to the effectiveness as of the end of the fiscal year.

Answer: B
 If the client remedies a material weakness before the end of the fiscal year, the auditor may be able to issue an unqualified opinion if they obtain sufficient evidence of the effectiveness of the control.

Answer: C
 A scope limitation does not necessarily require the auditor to issue an adverse opinion. The auditor may be able to issue a qualified opinion or a disclaimer of opinion depending on the circumstances.

Answer: D
 Section 404 of the Sarbanes-Oxley Act requires the auditor to design the audit to obtain reasonable assurance about whether material weaknesses in internal control over financial reporting exist. It does not require the auditor to detect all deficiencies in internal control.

Which of the Following Is True Regarding the Auditor's Opinion