If the auditor finds material weaknesses in the internal controls of the client an adverse report would be issued.

Question

Quizplus · Accepted Answer

If material weaknesses are found in the internal controls of the client, the auditor is required to issue an adverse report. This report indicates that the financial statements may not be reliable and that there is a high risk of material misstatement in the financial statements.

If the Auditor Finds Material Weaknesses in the Internal Controls