If the auditor initially considers the internal control environment risky, but later during the audit concludes it to be adequate as a result of substantive procedures, the auditor:
A) should reflect the new assessment in its report on ICFR.
B) should increase substantive testing.
C) should issue a new opinion on the financial statements.
D) should issue a new opinion on the ICFR.

Question

Quizplus · Accepted Answer

The auditor should reflect the new assessment in its report on Internal Control over Financial Reporting (ICFR) if the initial assessment of the internal control environment as risky changes to adequate as a result of substantive procedures. This adjustment ensures that the report accurately reflects the auditor's final assessment of the internal controls.

If the Auditor Initially Considers the Internal Control Environment Risky