M2-Communication and Reporting in an Integrated Audit

Question 1

In reporting on a nonissuer’s internal control over financial reporting, the auditor’s report should include a paragraph stating that, because of inherent limitations of any internal control, errors or fraud may occur and not be detected. (true or false)

Answer 1

true

Question 2

A scope limitation requires the auditor to disclaim an opinion or withdraw from the engagement, and a material weakness in internal control requires the auditor to issue an adverse opinion. Neither situation would result in a qualified opinion. (true or false)

Answer 2

true

Question 3

A report on an issuer’s integrated audit must include the statement that the audit was conducted in accordance of the standards of the Public Company Accounting Oversight Board (not AICPA standards) (true or false)

Answer 3

true