I haven't gotten to the part where Becker talks about opinions issued specifically on internal controls, but I know we talked about this in my audit class last fall, so I dug out my notes. After changing any instance of “unqualified” to “unmodified,” here's what I've got:
“The three types of opinions that can be issued on internal controls over financial reporting are: A) unmodified (if there are no material weaknesses or scope limitations), B) adverse (if there is a material weakness), or C) disclaimer of opinion (if there is a material scope limitation). A qualified opinion is not an appropriate opinion to issue regarding internal controls.”
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I also looked at my past quizzes and, wow, I was bad at audit. Hopefully I've improved since then. If anyone wants to test their knowledge about internal control testing, here's a pretty good question that I got 2/5 points on the first time around:
Which of the following statements, if any, is / are true? Circle as many as you deem appropriate.
A) If a system of internal control is well designed, the auditor will test the controls
B) Tests of controls must be performed if control risk is set below the maximum level
C) To compensate for internal control systems that are poorly designed, the auditor will perform extensive test of controls
D) GAAS require the auditor to test controls
E) Tests of controls are used to determine the amount of misstatement in an account
Answer key: https://imgur.com/ENDK19g
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In other news, just finished the sampling part of A5. I can see the light at the end of the tunnel.
FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88
Licensed December 2015
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