What are some major reasons for departing from the standard, unqualified report on internal control over financial reporting?
Answer to relevant QuestionsWhat type of opinion(s) would the audit team issue on the effectiveness of internal control over financial reporting if a material weakness in internal control exists? How would the standard report be modified?To test the operating effectiveness of a control, an audit team might use a combination of each of the following tests except for: a. Inquiry of client personnel. b. Observation of company operations. c. Confirmation of ...A material weakness is a situation in which a. It is probable that an immaterial financial statement misstatement would not be detected on a timely basis. b. There is a remote likelihood that a material misstatement would be ...The purpose of separating the duties of hiring personnel and distributing payroll checks is to separate the a. Authorization of transactions from the custody of related assets. b. Operational responsibility from the record- ...Auditors are required to obtain a sufficient under-standing of each component of a client’s internal control. This understanding is used to assess control risk and plan the audit of the client’s financial statements. ...
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