[rabusch06]

The following question is in NINJA MCQ:

When communicating internal control related matters noted in an audit, an auditor’s report issued on significant deficiencies should indicate that:

A.

misstatements may occur and not be detected because there are inherent limitations in any internal control.

B.

the issuance of an unmodified opinion on the financial statements may be dependent on corrective follow-up action.

C.

the deficiencies noted were not detected within a timely period by employees in the normal course of performing their assigned functions.

D.

the purpose of the audit was to report on the financial statements and not to provide assurance on internal control.

The answer is D. I answered A frankly because I was pretty positive all the other choices were wrong. I thought answer D was wrong because I thought in an integrated audit under the PCAOB you do provide an opinion on the effectiveness of internal control. I know under the AICPA audit though you do not. When reading these questions, how can you determine if they are talking about an audit under the AICPA or an integrated audit under the PCAOB?