CPA · Question 41 · Area IV: Forming Conclusions and Reporting
Scenario: 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. The auditor has not been engaged to audit internal control. <br/><br/>How should the material weakness be handled in the auditor's report on the financial statements?
Answer options:
It should be disclosed in an Emphasis-of-Matter paragraph.
It should be disclosed in an Other-Matter paragraph.
The material weakness should NOT be mentioned in the auditor's report on the financial statements.
The opinion should be qualified due to the material weakness.
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