[Anonymous]

So I came across this simulation in a practice test. You just choose what opinion/action you would do, as the auditor, in X situation. This is for an audit of internal control.

The auditors concluded that the ineffectiveness of the design of controls over accounts payable and cash disbursements represents a material weakness in internal control even though the financial statements are not materially misstated.

And the answer is: Express an adverse opinion on the internal controls.

Which I understand. But if this was just an audit on the financial statements, and not specifically internal control, what would happen? How would the report differ?

[Anonymous]

@yuyi325,

that's ok, don't worry, hope you did not confuse yourself:)) So, the question is do we ever express our opinion on internal control for either issuers or non-issuers or we just communicate audit committee in 60 days after report release when we found material weakness or/and significant deficiency? I thought that we only have to communicate, am I wrong again?

[Anonymous]

CPA_NY – if you are performing an integrated audit for an issuer, you will report on internal control for financial reporting and express an opinion (or if you were hired to audit internal controls of a company). If you are auditing financial statements of a non-issuer, you are required to assess control risk and report material weaknesses/sig deficiencies to those charged with governance.

anyone out there feel free to correct me if I'm wrong (as I'm taking the exam tomorrow!)

[Anonymous]

@CrockPot78,

Thank you for the input, it sounds clear. Good luck on your exam tomorrow!

[Author]

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