If a subsequent event that has a material effect on ICFR is discovered after the financial report date, but existed at year-end, the duty of the auditor is to:
A) disclose the event in the audit report and issue a qualified opinion.
B) disclose the event in the audit report and issue an adverse opinion on the ICFR.
C) disclose the event in the audit report and add an explanatory paragraph.
D) depending on the circumstances, the auditor may choose any of the above.

Question

Quizplus · Accepted Answer

If a material weakness in ICFR existed at year-end and is discovered after the financial report date, the auditor should disclose the event and issue an adverse opinion on the ICFR.

If a Subsequent Event That Has a Material Effect on ICFR