Question

An integrated audit refers to _______.

A) Integrating the opinion of the prior auditor into the current year audit
B) Allowing the firm's legal counsel to amend the audit report as they see fit
C) Performing the financial statement audit and the audit of the effectiveness of internal control over financial reporting (ICFR) at the same time
D) Only auditing the financial statements, with no procedures extended to the system of internal control.

Answer 1

An integrated audit refers to performing the financial statement audit and the audit of the effectiveness of internal control over financial reporting (ICFR) at the same time.

Step-by-step explanation:

An integrated audit refers to performing the financial statement audit and the audit of the effectiveness of internal control over financial reporting (ICFR) at the same time. This means that both the financial statements and the internal control procedures are reviewed and evaluated together, in order to provide a comprehensive assessment of a company's financial reporting system. It is a more efficient and effective approach that allows auditors to identify any issues or deficiencies in both the financial statements and the internal controls simultaneously.