Final answer:
An integrated audit, which combines the ICFR and financial statements audit, is required by PCAOB guidelines and is true. This approach ensures auditors evaluate control risks and test controls to enhance the reliability of the financial statements.
Step-by-step explanation:
The statement that the audit of Internal Control over Financial Reporting (ICFR) and the financial statements audit should be conducted as an "integrated audit" is true. According to the Public Company Accounting Oversight Board (PCAOB) guidelines, an integrated audit is a comprehensive approach that combines the evaluation of the effectiveness of ICFR and the audit of the financial statements. This approach requires auditors to assess control risks and test controls, and these activities must inform the financial statement audit. By integrating these processes, auditors gain a full understanding of the control environment and financial processes which benefits the reliability and completeness of the audit outcome.