Final answer:
In an internal control audit under PCAOB requirements, the existence of one or more material weaknesses at year-end would not result in a qualified opinion but would lead to an adverse opinion. The correct answer is option C) No Yes.
Step-by-step explanation:
When performing an internal control audit under Public Company Accounting Oversight Board (PCAOB) requirements, the discovery of one or more material weaknesses in internal control at year-end can result in different types of audit reports. The presence of a material weakness would typically lead to an adverse opinion, indicating that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented or detected on a timely basis. If the auditor believes that, despite the material weaknesses, the financial statements fairly present the financial position of the company in conformity with generally accepted accounting principles (GAAP), they might issue a qualified opinion or an unqualified opinion with an explanatory paragraph. However, the answer to the question is option C) No Yes, which means that if there are material weaknesses, the auditor would not give a qualified opinion but would issue an adverse one.