CPA · Question 77 · Area I: Ethics & General Principles
An auditor is auditing the financial statements of a nonissuer. The auditor identifies a material weakness in internal control. The auditor's report on the financial statements is unmodified. Which of the following is TRUE regarding the communication of the material weakness?
Answer options:
The auditor must disclose the material weakness in the audit report.
The auditor must issue an adverse opinion on the financial statements.
The auditor must communicate the material weakness in writing to management and those charged with governance.
The auditor need not communicate it if the financial statements are correct.
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