Governmental Audit Reports may include a report describing instances of fraud or illegal acts.

Question

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The auditor is required to prepare up to five reports: A report containing an opinion on the financial statements, a report discussing the evaluation and testing of internal control and compliance with laws and regulations, a report discussing significant deficiencies in internal controls, a report describing instances of fraud, illegal acts, or other material noncompliance and a report containing the views of responsible officials of the audited organization regarding any reported significant deficiencies.

Governmental Audit Reports May Include a Report Describing Instances of Fraud