Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 6

Auditor's report in an integrated audit. Refer to Exhibit 3-9 for the Report of Independent Registered Public Accounting Firm for Hewlett Packard Company.
a. What type of opinion did the auditor issue regarding management's assessment of internal controls
b. What type of opinion did the auditor issue regarding Hewlett Packard's financial statements
c. Explain the third paragraph of the auditor's opinion, "Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate."