Answered: 17) A control deficiency is always…

17) A control deficiency is always considered material weakness and PCAOB requires the auditors opinion on internal control to reflect this. True False

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 34CYBK

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17) A control deficiency is always considered material weakness and PCAOB requires the auditors opinion on internal control to reflect this.

True

False

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Which statement is false? a. If control risk is assessed as low, the auditor cannot plan on relying on the controls to increase substantive procedures for account balances. b. The auditor will not perform tests of controls; instead, the auditor must plan for substantive procedures, without relying on the client's internal controls. c. Based on obtaining an understanding through risk assessment procedures, the auditor assesses control risk ranging from high (weak controls) to low (strong controls). d. Assessing control risk as high means the auditor does not have confidence that internal controls will prevent or detect material misstatements; assessing control risk as low has the opposite implication.
Under PCAOB standards, when a material weakness exists, the auditors’ report on internal control is most likely to include an opinion that is: Multiple Choice qualified. disclaimer. unqualified. adverse.
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External auditors cannot delegate responsibility for audit decisions to the internal auditors. True False
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