Question: 1. The external auditor identified a material misstatement in the financial statements that was not detected by management of the company. 2. The external auditor

1. The external auditor identified a material misstatement in the financial statements that was not detected by management of the company. 2. The external auditor was unable to obtain any evidence about the operating effectiveness of internal control over financial reporting. 3. The external auditor identified several significant deficiencies in internal control. Because of these significant deficiencies, the auditor believes that there is a reasonable possibility that internal control will not prevent or detect material misstatements in the financial statements as a whole on a timely basis. 4. The external auditor determined that a deficiency in internal control exists that will not prevent or detect a material misstatement in the financial statements. 5. During interim testing, the external auditor identified and communicated to management a significant control deficiency. Management immediately corrected the deficiency and the auditor was able to sufficiently test the newly instituted internal control before the end of the fiscal period. 6. As a result of performing tests of controls, the external auditor identified a significant deficiency in internal control over financial reporting; however, the auditor does not believe that it represents a material weakness in internal control. Required: Complete the table below, state the appropriate type of audit report on internal control over financial reporting for each of the above six situations from the following alternatives

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!