[HoosierCPA]

I posted this in the AUD Review thread but haven’t gotten any feed back.

An integrated audit is audit the effectiveness of IC along with the audit of the financials. My question–the report on the effectiveness of IC–is this a restricted use report? I want to say yes but I cannot find the answer.

Another thing somewhat confusing dealing with this is integrated audits are required for issuers. However when you read the audit report in the auditors responsibilities paragraph of the audit report it reads…

“the auditor considers IC relevant to the entity’s preparation and fair presentation of the financials…but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control”

Freaking out a little bit with my exam being tomorrow!

My big questions:

— Is the IC report restricted?
— Is there an opinion expressed (for both issuers and non-issuers)?
— If there is an opinion why does the auditors report use the wording it does above? …”but not for the purposes of expressing an opinion”

**side note I’ve found some old A71 threads about integrated audits, some of them say you do express an opinion for Integrated audits of issuers and not non-issuers integrated audits.**

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[needtopass]

For my understanding about the Integrated audit, it is required for an audit of an issuer, but not required for the audit of nonissuer.
For the audit of nonissuer, besides the audit report on F/S, the auditor will give a separate report on the significant deficiency and material weakness that the auditors find during the audit. this will be a limited use report. But the client can engaged the auditor to give an opinion on their IC–this is an attestation engagement, in this engagement, the auditor of nonissue will give an opinion on the IC, it can be general used, because the auditor will issuer an opinion on the IC (not as part of the audit, but an separate attestation engagement).
For the audit of issuers, the auditor is required to report on the effectiveness of IC. it will be called an integrated audit, and they will be likely issue an audit report that including both the opinion on the F/S and the IC.
“the auditor considers IC relevant to the entity’s preparation and fair presentation of the financials…but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control” this is from the report of the a nonissuer's audit report, the issuers integrated audit report is different.
Hopefully this can help a little, and its just my opinion, it may be wrong, but just my understanding! and good luck on your exam tomorrow!!

[HoosierCPA]

@needtopass can't explain how much stress was just lifted off my shoulders–your explanation was great. I had been reading various topics that I searched and everything was just jumbling my brain! haha.

Thank you!!!!

FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16

[Author]

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