Which of the following facts would result in an auditor issuing an adverse report over internal control?
A)The controls are believed to be effective.
B)The tests of controls support the documented understanding of controls.
C)There is a material weakness in the design or operation of controls.
D)A confirmation is not returned by a customer timely.

Question

Quizplus · Accepted Answer

An adverse report is issued when there is a material weakness in the design or operation of internal controls. Choice A and B both suggest that the controls are effective and working properly, thus an adverse report would not be necessary. Choice D is also unrelated to the effectiveness of internal controls.

Which of the Following Facts Would Result in an Auditor