Unformatted text preview: EOC #11 Chapter 7 7-14 The auditor’s report contains an opinion on the effectiveness of ICFR based on the auditor’s independent audit work. Similar to reports relating to the financial statement audit, the basic options for the opinions are unqualified, disclaimer, and adverse. Note that AS5 does not allow for a qualified opinion. The auditor’s unqualified opinion on the effectiveness of a client’s internal control signifies that the client’s internal control is designed and operating effectively in all material respects. Significant deficiencies relate to possible financial statement errors that are less than material, and therefore do not require a departure from an unqualified opinion. A serious scope limitation requires the auditor to disclaim an opinion. An adverse opinion is required if a material weakness is identified. Figure 7-4 illustrates the types of auditor’s reports and the circumstances leading to each....
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- Spring '11
- Auditor's report, adverse opinion