If the auditor disagrees with management's assertion of internal control, the auditor:
A) ignores this and issues the proper opinion.
B) notes this in the footnotes.
C) notes this in the audit report.
D) None of the above.

Question

Quizplus · Accepted Answer

If the auditor disagrees with management's assertion of internal control, the auditor must note this in the audit report. This is because the auditor's opinion on the financial statements is influenced by the assessment of the internal controls in place. Therefore, if there are deficiencies in internal controls or if the auditor disagrees with management's assessment, this information must be disclosed in the audit report for the users of the financial statement to have a complete and accurate understanding of the financial information presented. Ignoring the issue or noting it only in the footnotes is not sufficient.

If the Auditor Disagrees with Management's Assertion of Internal Control