The standard report on internal controls over the financial reporting process is modified by the auditor in which of the following circumstances?
A)Management's annual report on internal controls is incomplete or improperly presented
B)There is a restriction on the purpose of the engagement
C)The auditor decides to refer to the report of other auditors for the auditor's own report
D)There is other information in management's quarterly report on internal control over financial reporting
E)Management's annual certification pursuant to Section 404 of the Sarbanes-Oxley Act is misstated
F)both A and C
G)both B and E
H)both D and E

Question

Quizplus · Accepted Answer

In both options A and C, there are issues with the completeness or accuracy of the information provided by management. In option A, the annual report on internal controls is incomplete or improperly presented, and in option C, the auditor is relying on the report of other auditors, which may impact the scope of their own report. Therefore, in both these circumstances, the standard report on internal controls needs to be modified by the auditor.

The Standard Report on Internal Controls Over the Financial Reporting