What are the types of reports that an auditor can issue for an audit of ICFR? Briefly identify the circumstances justifying each type of report.
Answer to relevant QuestionsUnder what circumstances would an auditor give an adverse opinion on the effectiveness of an entity’s ICFR?Following are three examples of controls for accounts that you have deter-mined are significant for the audit of ICFR. For each control, determine the nature, timing, and extent of testing of the design and operating ...Assume that scenario (a) in Problem 7- 36 is a material weakness. Prepare a draft of the auditor’s report for an audit of ICFR. Assume that Lorenz’s auditor is issuing a separate report on internal control.Distinguish between Type I and Type II errors. What terms are used to describe these errors when the auditor is conducting tests of controls and substantive tests? What costs are potentially incurred by auditors when such ...Multiple Choice1. An advantage of statistical sampling over non-statistical sampling is that statistical sampling helps an auditor to a. Eliminate the risk of non-sampling errors. b. Reduce audit risk and materiality to a ...
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