193k views
0 votes
Prior to issuing a report on internal controls over financial reporting, an auditor is required to:

A) perform procedures sufficient to identify all control deficiencies.

B) communicate to management, in writing, all control deficiencies previously included in written communication from the internal auditors.

C) communicate to management, in writing, all control deficiencies identified during the audit and inform the audit committee when such a communication has been made.

D) represent that no significant deficiencies were noted during the audit of internal control.

1 Answer

4 votes

Final answer:

Prior to issuing a report on internal controls over financial reporting, an auditor is required to communicate in writing any control deficiencies found during the audit to management and inform the audit committee. Option C accurately reflects this requirement.

Step-by-step explanation:

The subject of this question revolves around the pre-reporting requirements for an auditor related to internal controls over financial reporting. According to auditing standards, 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.

Option C is the correct answer because it includes the comprehensive responsibilities of the auditor before issuing the report. The auditor must identify any control deficiencies, communicate them in writing to management, and inform the audit committee of this communication. Ensuring that management and the audit committee are aware of any issues before the report is issued is a crucial step in the auditing process.

User Iamsmug
by
8.0k points

No related questions found