For integrated audits of large, publicly traded companies, the level of understanding of internal controls and the extent of testing of those controls need to be sufficient for the auditor to issue an opinion on the effectiveness of internal controls over financial reporting.

Question

Quizplus · Accepted Answer

This statement is true. For integrated audits of large, publicly traded companies, the auditor must have a sufficient level of understanding of internal controls and perform extensive testing of those controls in order to issue an opinion on the effectiveness of internal controls over financial reporting. This is required by the Sarbanes-Oxley Act and the rules of the Public Company Accounting Oversight Board (PCAOB) in the United States.

For Integrated Audits of Large, Publicly Traded Companies, the Level