[Marc]

In Becker, an MQC asks, ” In which case might an auditor of an issuer render a qualified opinion on internal control?

A. When there is a scope limitation.

B. When there is a material weakness in internal control

C. Both “a” and “b”

D. Neither “a” nor “b”

The answer is D, but wouldn’t there be a qualified opinion if there is a Material weakness present in GAAP or GASS? or are internal control opinions just different?

FAR - 67, 85
AUD - 50, 68, 79 I'm DONE!
BEC - 81
REG - 78

First Expiration = 8/31/2013

[rhine500]

Material Weaknesses are related to Internal Control (over financial reporting), Material Misstatements are related to the Financial Statements having a departure from GAAP.

Material Weakness = reasonable possibility that a material misstatement of financial statements will not be prevented/detected on a timely basis by internal control.

If auditing Internal Control, a Material Weakness is found = Adverse opinion, if found by auditor only, or “Unqualified” if Management found it too and included it in their assessment.

A Scope Limitation = Disclaimer or withdraw

I don't think there is a Qualified Opinion on Internal Control.

FAR: 92
AUD: 99
BEC: 90
REG: 95

[rhine500]

Actually,a Material Weakness may be an Adverse Opinion no matter what, I'm not sure.

FAR: 92
AUD: 99
BEC: 90
REG: 95

[kyu6]

If you look on A5-46, it will tell you that there are no “qualified” opinions allowed on internal control. Score limitation – disclaimer or withdraw. Material weakness in internal control – adverse opinion. Hope this helps!

[Marc]

Thank you both, yes this helps…excellent scores rhine500.

FAR - 67, 85
AUD - 50, 68, 79 I'm DONE!
BEC - 81
REG - 78

First Expiration = 8/31/2013

[Author]

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