You are completing an internship with a Big Four accounting firm and have worked on one client, a public company, during the entire internship. In your college class, you learned that an audit firm conducts an integrated audit and renders two opinions, one on the fair presentation of the financial statements and another on the effectiveness of ICFR. You see one draft audit report prepared by the manager on the audit team. You wonder why there is only one report, so you ask the manager, “Shouldn’t there be another report since we are giving two opinions?” The manager replies with a smile, “Look closely, our two opinions are in that one report.”

Required

Research the PCAOB Auditing Standards to find an example of a combined report on the company’s financial statements and on ICFR. Go to the PCAOB’s website (www.pcaobus.org) and navigate to the auditing standards. Open AS 2201 An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements. Copy and paste an example of a combined report and cite where it is found in the standard (the paragraph number). Read through the report and highlight the components of both reports (refer to Illustrations 15.2 and 15.19 for the components). Does the combined report have all the required components of both reports?