A modification of the standard report is required for all of the following conditions except:
A)there is a restriction on the scope of the engagement.
B)the presence of a material weakness at the end of the period.
C)management has concluded that internal controls are effective.
D)the auditor was not able to apply all the procedures necessary.

Question

Quizplus · Accepted Answer

A modification of the standard report is required in cases where there is a restriction on the scope of the engagement (such as limited access to information or records), the presence of a material weakness in internal controls, or if the auditor was not able to apply all the procedures necessary. However, if management has concluded that internal controls are effective, there is no need for a modification of the standard report as long as the auditor agrees with management's assessment. Therefore, the correct answer is C.

A Modification of the Standard Report Is Required for All