Question

Prior to issuing a report on internal controls over financial reporting, an auditor is required to?

1) perform procedures sufficient to identify all control deficiencies.
2) communicate to management, in writing, all control deficiencies previously included in written communication from the internal auditors.
3) communicate to management, in writing, all control deficiencies identified during the audit and inform the audit committee when such a communication has been made.
4) represent that no significant deficiencies were noted during the audit of internal control.

Answer 1

An auditor is required to perform several procedures prior to issuing a report on internal controls over financial reporting. These include identifying control deficiencies and communicating them in writing to management and the audit committee.

Step-by-step explanation:

Prior to issuing a report on internal controls over financial reporting, an auditor is required to perform several procedures. These procedures include:

1. Identifying all control deficiencies
2. Communicating, in writing, all control deficiencies previously included in written communication from the internal auditors to management
3. Informing the audit committee when a written communication has been made to management about control deficiencies identified during the audit

The auditor is not required to represent that no significant deficiencies were noted during the audit of internal control.