The discovery of an intentional misstatement,even if immaterial,could impact the auditor's opinion on the effectiveness of the client's internal control over financial reporting.

Question

Quizplus · Accepted Answer

Any intentional misstatement found during the audit is a red flag that the client's internal control over financial reporting may not be effective in preventing or detecting such misstatements. As a result, the auditor may need to reassess the risks of material misstatement and adjust their opinion accordingly. Even if the misstatement is considered immaterial, it can still raise concerns about the client's overall control environment and the reliability of their financial statements.

The Discovery of an Intentional Misstatement,even If Immaterial,could Impact the Auditor's