What is Opinion on internal control over financial reporting?
In short
In an integrated audit, the auditor gives an opinion on whether the company maintained effective internal control over financial reporting as of year-end. One or more material weaknesses lead to an adverse opinion.
Key takeaways
- The financial statement opinion can still be unmodified when there is a material weakness.
- The two opinions can be given in a combined report or separate reports.
- A scope limitation leads to a disclaimer or withdrawal.
Where it's tested
AUD: Audit Reports — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An auditor is unable to observe the physical inventory count or satisfy themselves through alternative procedures, and inventory represents 60% of total assets. What opinion is appropriate?