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Reporting on internal control over financial reporting

AUD Chapter 27 · Area IV · Blueprint IV.A

Larger public companies need two opinions from their auditor: one on the numbers and one on the controls behind them. The Blueprint asks what the auditor considers in forming the second opinion, and how the report is laid out, including when the two reports are combined. The rules are short and very testable because they differ from the financial statement opinion in a few sharp ways.

In this chapter

1. What an integrated audit is
2. What management must do first
3. The top-down approach
4. Forming the ICFR opinion
5. An adverse ICFR opinion and the financial statements
6. The report: separate or combined, and what it says

This chapter has 6 lessons, 50 practice MCQs with explanations and 13 simulations, plus flashcards and a recall sheet.

What this chapter covers

• The integrated audit
• material weakness and the adverse opinion
• separate or combined reports
• report modifications

Chapter 26: Audit reports and opinions · Chapter 28: Attestation reports