Prior to issuing a report on internal controls over financial reporting, an auditor is required to:
A)perform procedures sufficient to identify all control deficiencies.
B)communicate to management, in writing, all control deficiencies previously included in written communication from the internal auditors.
C)communicate to management, in writing, all control deficiencies identified during the audit and inform the audit committee when such a communication has been made.
D)represent that no significant deficiencies were noted during the audit of internal control.

Question

Quizplus · Accepted Answer

The auditor is required to communicate to management, in writing, all control deficiencies identified during the audit and inform the audit committee when such a communication has been made. This is in accordance with PCAOB auditing standard 2201. Option A is incorrect because the auditor only needs to identify material weaknesses, not all control deficiencies. Option B is incomplete, as the auditor is required to communicate all deficiencies identified during the audit, not just ones previously communicated by internal auditors. Option D is incorrect because the auditor must report any significant deficiencies or material weaknesses that are uncovered.

Prior to Issuing a Report on Internal Controls Over Financial