In an audit report on the effectiveness of ICFR for a public company, which paragraph cautions not to use the current year opinion to assume that future internal controls will be effective?
A)definition and inherent limitations paragraph
B)scope paragraph
C)opinion paragraph
D)paragraph referencing the financial statement audit

Question

Quizplus · Accepted Answer

The definition and inherent limitations paragraph in an audit report on the effectiveness of Internal Control over Financial Reporting (ICFR) typically includes cautionary language indicating that the current year's opinion on the effectiveness of internal controls should not be used to assume that future internal controls will also be effective. This paragraph helps to set the boundaries of the audit's scope and clarifies that the audit provides a historical perspective, not a forward-looking assurance.

In an Audit Report on the Effectiveness of ICFR for a Public