Which of the following statements is correct concerning the auditor’s opinion on

Question

Which of the following statements is correct concerning the auditor’s opinion on internal control effectiveness?

a. The report describes any material weaknesses and discusses actions taken by management to remediate the problems.

b. The report does not discuss whether the control weaknesses were first identified by management or the auditor.

c. The report does not recognize the integrated nature of the audit and the affect of the material weakness on the planning of the financial statement audit.

d. The report identifies management’s actions to remedy the prior year’s control weaknesses.

Explanation / Answer

Question : Which of the following statements is correct concerning the auditor’s opinion on internal control effectiveness?

Answer = a. The report describes any material weaknesses and discusses actions taken by management to remediate the problems.

Internal auditor assess whether the controls are properly designed, implemented and working effectively, and check whether their is any material weakness and discusses action taken by management.Internal control plays an important role in the prevention and detection of fraud at early stage.

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