Final answer:
The separate report on internal control over financial reporting cannot contain a cross-reference to the auditor's report on the financial statements.
Step-by-step explanation:
The statement that the separate report on internal control over financial reporting cannot contain a cross-reference to the auditor's report on the financial statements is false. It is common for auditors to issue a combined report that includes both an opinion on the financial statements and an opinion on internal control over financial reporting. However, when separate reports are issued, it is acceptable for the report on internal control over financial reporting to include a reference to the report on financial statements.
The statement is True. The separate report on internal control over financial reporting cannot contain a cross-reference to the auditor's report on the financial statements. The auditor's report on the financial statements is a separate report issued by an independent auditor that provides an opinion on the fairness of the financial statements. It includes the auditor's conclusions regarding the overall financial statement presentation, including internal control over financial reporting, if applicable.