Question

If the audit firm is performing an integrated audit for a public company, _______.

A. there is an expectation that the auditor will test controls in order to support an opinion on Internal Control over Financial Reporting (ICFR)
B. there is an expectation that the auditor will audit the financial statements only in order to support an opinion on ICFR
C. the audit should be conducted in conjunction with the internal auditors
D. the auditor should request the assistance of the prior auditor

Answer 1

In an integrated audit for a public company, the auditor is expected to test controls to support an opinion on ICFR, in addition to the audit of the financial statements.

Step-by-step explanation:

If an audit firm is performing an integrated audit for a public company, A. there is an expectation that the auditor will test controls in order to support an opinion on Internal Control over Financial Reporting (ICFR).

This type of audit includes not only an examination of the financial statements but also a thorough evaluation of the company's internal controls to ensure they are adequately designed and operating effectively. The auditor must then express an opinion on both the accuracy of the financial statements and the effectiveness of the internal controls.