If the auditor is unable to determine the effect of a subsequent event on the effectiveness of internal control at year-end, the auditor must give an adverse opinion on internal control over financial reporting.

Question

Quizplus · Accepted Answer

If the auditor is unable to determine the effect of a subsequent event on the financial statements, but has obtained sufficient evidence that the internal control was effective at year-end, the auditor may still issue an unqualified opinion on internal control over financial reporting. However, if the auditor is unable to obtain sufficient evidence to support the effectiveness of internal control at year-end, the auditor will issue a qualified or adverse opinion on internal control.Reporting on Subsequent Events in the Independent Auditor's Report

If the Auditor Is Unable to Determine the Effect of a Subsequent