Question

When management chooses to include information in its report on ICFR that is in addition to the information required to be provided, what should the auditor do?

a. The auditor must endorse the information.
b. The auditor must include the information as part of the opinion.
c. The auditor will disclaim an opinion on that additional information.
d. The auditor will present the information in a separate schedule in the footnotes.

Answer 1

When management includes additional information in the report on ICFR, the auditor has several options: endorsing the information, incorporating it into the opinion, disclaiming an opinion, or presenting it separately.

Step-by-step explanation:

When management chooses to include information in its report on ICFR (Internal Controls over Financial Reporting) that is in addition to the information required to be provided, the auditor has several options.

1. 
   
3. The auditor can endorse the information (option a), meaning they can express agreement or support for the additional information included by management.
4. 
   
6. The auditor can include the information as part of the opinion (option b), meaning they incorporate the additional information into their overall assessment and conclusion on the effectiveness of ICFR.
7. 
   
9. The auditor may disclaim an opinion on that additional information (option c), indicating that they are unable to form an opinion on the reliability or appropriateness of the additional information provided by management.
10. 
    
12. Alternatively, the auditor may present the information in a separate schedule in the footnotes (option d), highlighting the additional information separately from the main opinion.

Ultimately, the choice depends on the auditor's assessment of the additional information's relevance, materiality, and reliability.