Which of the following would result in an adverse report issued by an auditor on an audit of internal control?
A)The control risk is assessed at a lower level.
B)The tests of controls support the documented understanding of controls.
C)There is a material weakness in the design or operation of controls.
D)A confirmation is not returned by a customer in a timely manner.

Question

Quizplus · Accepted Answer

An adverse report on an audit of internal control is issued when the auditor has identified a material weakness in the design or operation of controls. Choices A and B indicate a lower risk of material misstatement, which would result in a more favorable report. Choice D is not directly related to the assessment of internal control and would not impact the audit report.

Which of the Following Would Result in an Adverse Report