An auditor identified a material weakness in internal control in December.The client was informed and the client corrected the material weakness shortly after year-end (December 31);the auditor agrees that the correction eliminated the material weakness as of January 31.The appropriate audit report on internal control under PCAOB standards on reporting on internal control is:

Question

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The appropriate audit report is adverse because the material weakness existed at the end of the fiscal year (December 31), despite being corrected shortly after year-end. Under PCAOB standards, the existence of a material weakness at the fiscal year-end requires an adverse opinion on the effectiveness of internal control over financial reporting.

An Auditor Identified a Material Weakness in Internal Control in December.The