In which case might an auditor of an issuer render a

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In which case might an auditor of an issuer render a qualified opinion on internal control?I.When there is a scopelimitation.II.When there is amaterial weakness ininternal control.a.Both I andII.b.II only.c.I only.d.Neither Inor II.ExplanationChoice "d" is correct. A scope limitation requires the auditor to disclaim an opinion or withdrawfrom the engagement, and a material weakness in internal control requires the auditor to issue anadverse opinion. Neither situation would result in a qualified opinion.Choice "c" is incorrect. A scope limitation requires the auditor to disclaim an opinion orwithdraw from the engagement.Choice "b" is incorrect. A material weakness in internal control requires the auditor to issue anadverse opinion.Choice "a" is incorrect. A scope limitation requires the auditor to disclaim an opinion orwithdraw from the engagement, and a material weakness in internal control requires the auditorto issue an adverse opinion. Neither situation would result in a qualified opinion.
Gail is auditing the financial statements of Hoefener Home Improvements, a publicly heldcompany. Gail notes several deficiencies in internal control, and is trying to determine whethereach deficiency constitutes a significant deficiency or a material weakness. Which best describesthe framework Gail should use in making this evaluation?
Choice "d" is incorrect. A significant deficiency exists for weaknesses that are important enoughto merit the attention of those responsible for financial reporting.

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