How would the auditors' opinion on the entity's financial statements be affected if a material weakness in internal control over financial reporting is identified?
A) The auditors would need to disclaim an opinion on the entity's financial statements.
B) The auditors would need to issue either a qualified or an adverse opinion on the entity's financial statements, depending on the significance of the material weakness.
C) The auditors' opinion on the entity's financial statements would not be affected by the material weakness, assuming sufficient appropriate evidence has been obtained.
D) The auditors would need to withdraw from the engagement and would not issue an opinion or other form of assurance on the financial statements.

Question

Quizplus · Accepted Answer

A material weakness in internal control over financial reporting does not automatically affect the auditors' opinion on the financial statements if they can still obtain sufficient appropriate evidence to conclude that the financial statements are free of material misstatement.

How Would the Auditors' Opinion on the Entity's Financial Statements