The auditor's communication of material weaknesses in internal control for a nonpublic company is:
A)required to enable the auditor to state that the examination has been made in accordance with generally accepted auditing standards.
B)the principle reason for studying and evaluating the system of internal controls.
C)required even though the financial statement audit for private companies does not require an audit of the entity's system of internal control.
D)required to be included as part of the audit opinion.

Question

Quizplus · Accepted Answer

Material weaknesses in internal control must be communicated by the auditor, even though a full audit of the entity's system of internal control is not a requirement for private companies' financial statement audits. This communication is essential for ensuring that management is aware of significant deficiencies that could affect the financial reporting.

The Auditor's Communication of Material Weaknesses in Internal Control for a Nonpublic