Question

Firms subject to the reporting requirements of the Securities Exchange Act of 1934 are required by the Foreign Corrupt Practices Act of 1977 to maintain satisfactory internal control. Moreover, the Sarbanes-Oxley Act of 2002 requires that annual reports include (1) a statement of management’s responsibility for establishing and maintaining adequate internal control and procedures for financial reporting and (2) management’s assessment of their effectiveness. The role of the registered auditor in this process is to:
A.Express an opinion on the effectiveness of internal contrfinancial reporting.
B.Express an opinion on whether the client is subject to thExchange Act of 1934.
C.Disclaim an opinion on the assessment of controls.
D.Report clients with unsatisfactory internal control to the

Answer 1

Answer:

C) Disclaim an opinion on the assessment of controls.

Explanation:

According to PCAOB AS 2201, the registered auditor must disclaim an opinion on the effectiveness of internal controls used by the corporation. The auditor must also determine whether management's reports are complete and properly presented.  In a final report, the auditor must give the reasons for his/her determinations.