Essay
Assume that an auditor conducts an integrated audit in year one and issues a
clean opinion on management's assessment of internal control, internal control effectiveness,
and fairness of the financial statements. There is no change in the accounting
information system. During the first quarter of year two, the auditor identifies a
control deficiency that has not yet caused a material misstatement in the financial
records or statements, but could cause a material misstatement. What does this mean
regarding the appropriateness of the auditor's reports on ICFR in the prior year?
Correct Answer:
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