When reporting on conditions relating to an entity's internal control observed during an audit of the financial statements, the auditor should include a Description of tests performed to search for material weaknesses. Statement of positive assurance on the structure. Paragraph describing the inherent limitations of the structure. Restriction on the distribution of the report.

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Daniella Nolan

Business

13 November, 07:20

When reporting on conditions relating to an entity's internal control observed during an audit of the financial statements, the auditor should include a Description of tests performed to search for material weaknesses. Statement of positive assurance on the structure. Paragraph describing the inherent limitations of the structure. Restriction on the distribution of the report.

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Walls · Answer 1

a Description of tests performed to search for material weaknesses.

Explanation:

When reporting on conditions relating to an entity's internal control observed during an audit of the financial statements, the auditor should include a Description of tests performed to search for material weaknesses.

Tests of controls may be performed to test the effectiveness of certain controls that auditors consider relevant to preventing and detecting errors and fraud that are material to the financial statements, thereafter a management report must be issued to the audit committee for any deficiencies in controls to be addressed. The management letter describes the tests performed and the results in each category