To issue a report on internal control over financial reporting for a public company, an auditor must:
A)evaluate management's assessment process.
B)independently assess the design and operating effectiveness of internal control.
C)evaluate management's assessment process and independently assess the design and operating effectiveness of internal control.
D)test controls over significant account balances.

Question

Quizplus · Accepted Answer

To issue a report on internal control over financial reporting for a public company, an auditor must evaluate management's assessment process and independently assess the design and operating effectiveness of internal control. Testing controls over significant account balances is also a part of assessing the operating effectiveness of internal control. Therefore, options A, B, and D are each partial requirements of the overall process, but only option C encompasses all the necessary components.

To Issue a Report on Internal Control Over Financial Reporting