The existence of a material weakness led to an adverse opinion in the internal control audit report of a publicly traded company.Which of the following statements is correct if management believes that it has remediated the weakness?

Question

Quizplus · Accepted Answer

Management may engage the auditors to report on whether the material weakness continues to exist prior to its next annual audit. This allows management to demonstrate that it has remediated the weakness and that the adverse opinion is no longer relevant. However, it is not required that management engage the auditors to report on the remediation of the material weakness. The auditors may also choose to perform their own evaluation of the remediation during the next annual audit. Management cannot modify the prior adverse audit report, only the auditors can modify their opinion based on the results of subsequent audits or evaluations.

The Existence of a Material Weakness Led to an Adverse