An auditor identified a significant deficiency in internal control in December.The client was informed and the client corrected the significant deficiency shortly before year-end (December 31);the auditor agrees that the correction eliminated the significant deficiency as of December 31.The appropriate audit report on internal control under a PCAOB Standard No.5 audit of internal control is:

Question

Quizplus · Accepted Answer

The correction of the significant deficiency before year-end means that the internal control is now effective as of December 31. Therefore, the auditor can issue an unqualified audit report on internal control because no significant deficiency exists at the end of the reporting period.

An Auditor Identified a Significant Deficiency in Internal Control in December.The