When there is a restriction on the scope of the internal control over financial reporting (ICFR)engagement,what should the auditor do?
A)The auditor will either withdraw from the engagement or disclaim an opinion.
B)The auditor will issue an adverse opinion.
C)The auditor will issue an opinion on the ICFR based on another audit firm's work.
D)The auditor will report this directly to the Treadway Commission.

Question

Quizplus · Accepted Answer

If there is a restriction on the scope of the ICFR engagement, the auditor cannot gather sufficient evidence to support an opinion on the effectiveness of the company's controls. In such a situation, the auditor will either have to withdraw from the engagement or disclaim an opinion, as per the AICPA auditing standards. An adverse opinion would only be issued if the auditor finds that the company's controls are not effective. There is no provision for issuing an opinion based on another audit firm's work, and reporting to the Treadway Commission is not a standard reporting requirement for auditors.

When There Is a Restriction on the Scope of the Internal