[ahsq]

How does the report look like on ineffective internal control aka control risk causing a material weakness in both an examination and a issuer audit’s report?

Would this be a disclaimer of opinion on the auditor report for both the IC and the presentation due to ineffective internal control?

[Sticky Nicky]

probably adverse for both,,,could be qualified though depending on how pervasive it is,,,disclaimer is for scope limitations,,,but u need to be more clear with your question because a material weakness can exist but that doesnt mean the F/S are materially misstated in which case you would have an adverse opinion on the I/C report and could still have an unqualified opinion on the F/S…one material weakness=adverse

[ahsq]

I know that if I only do attestation to IC then IC report is a 100% adverse opinion on its own.

But how about if I need to examine both the IC and FS, since you HAVE to exam IC with the FS.

when I do examination for the FS under SSAE, the IC is material due bad segregation of duties(adverse IC opinion), would this results in a material misstatement (adverse opinion) in the FS or unmodified in the FS? <—– “bad internal control doesnt equal adverse opinion” says Tim Gearty

[ahsq]

If i only report over IC on Company A, i would express on IC only. Lets say it is Adverse opinion.

Then when I report examination on FS on Campany A I would only express opinion on FS, without expressing opinion of IC, even though IC has an Adverse opinion? how does that affect the presentation of the FS?

[ahsq]

how does an adverse internal control with adverse opinion on financial statement look like?

[Author]

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