Question 45in an examination of internal control over

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Question: 45In an examination of internal control over financial reporting, which deficiencies in controlshould be communicated in writing to those charged with governance?A.All deficiencies.B.Only material weaknesses.C.Only significant deficiencies.D.Both material weaknesses and significant deficiencies.Answer (D) iscorrectThe auditor should communicate, in writing, to management and to those charged withgovernance all material weaknesses and significant deficiencies identified during theaudit. The written communication should be made prior to the report release date. Theauditor also should communicate to management, in writing, all lesser deficiencies ininternal control and inform those charged with governance when such a communicationhas been made..
Question: 46During the audit of internal controls integrated with the audit of the financial statements, theauditor discovered a material weakness in internal control. The auditor most likely will express a(n)
.
Material weaknesses are significant control deficiencies that result in more than aremote chance that a material misstatement will result in the financial statements.A material weakness requires the auditor to express an adverse opinion on theeffectiveness of internal control.B.Qualified opinion on internal control.C.Unmodified opinion on internal control.D.Disclaimer of opinion on internal control.Question: 47Management of an issuer subject to SEC requirements requests the auditor to report onwhether a previously reported material weakness in internal control continues to exist. The request comes3 months after the annual audited financial statements and report on internal control were released..

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Term
Spring
Professor
Keith
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