* Your answer is incorrect. In an audit report on the effectiveness of ICFR for a public company, what does the Opinion on Internal Control over Financial Reporting paragraph explain? A material misstatement of the financial statements will not be prevented or detected on a timely basis. Circumstances may change in the future and render controls ineffective if the controls are not modified appropriately. An internal control system does not eliminate all risk associated with the preparation of financial statements. The auditors conducted their audit in accordance with the standards of the PCAOB