[reloadedxp]

I always tend to get confused on this topic but

1) For a integrated audit, an auditor tests on both the design and effectiveness of the internal controls over F/S and provides an opinion, but if it isn’t an integrated audit, then an auditor is NOT required to test effectiveness and also doesn’t provide an opinion.

2) For an integrated audit, is the I/C portion restricted? I remember reading somewhere that for one of the audits the I/C portion is restricted to certain parties, where another (audit on I/C?) there isn’t a restriction.

Can someone just correct me on the statements and confirm? thanks! 🙂

[reloadedxp]

Hopefully my question makes sense lol 🙂

[littlenumberrobot]

I thought the report was only restricted when it was a stand alone audit on the IC.

As for your point #1, yes auditor does not have to test controls(remember assuming non-public). But if any deficiencies come to the auditor's attention, one way or another, these must be communicated and that report is restricted also.

Hope that helps!

CA CPA - All because of the journey listed below
-----------------------------------------------------------------------
FAR - 53('10), 8/25/12 79 PASSED!
REG - 66('11), 69('12), 12/06/12 77 PASSED!!
BEC - 58('10), 74('12), 01/05/13 77 PASSED!!!
AUD - 43('11), 66('12), 69('13), 74('13) 7/29/13 85 PASSED!!!!!

(Combinations of Roger, Yaeger, Wiley Book, Wiley TB, & NINJA Notes)

Ethics 90%

[Angela]

Let's see if I can help.

For your question 1: for public companies (issuers), integrated audit is required. Auditors have to issue an opinion on both the F/S and internal control over Fin Reporting. But, for non-public companies, auditors issue an opinion on the effectiveness of internal control over fin reporting only when an attestation service over internal control is performed.

For question 2: communication on internal control deficiencies is restricted. But audit report on internal control is not restricted for integrated audits of public companies and non-public companies.

Hope it helps.

Audit 92 2013
Far 80 2014
Reg: May 2014

[Author]

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