If the auditor identifies control deficiencies,the auditor will not need to judge the severity of the deficiencies but instead would consult management about the need for a fraud audit.

Question

Quizplus · Accepted Answer

This statement is incorrect. If the auditor identifies control deficiencies, they must assess the severity of the deficiencies and their potential impact on the financial statements. Depending on the severity of the deficiencies, the auditor may need to modify their audit procedures or issue a qualified opinion. Only in rare cases of suspicion of fraud, the auditor may need to consult with management about the need for a fraud audit.

If the Auditor Identifies Control Deficiencies,the Auditor Will Not Need