Once the audit is completed, one of the items issued will be "the auditor's report on internal control over financial reporting provides two types of assurances (or opinions) on a company's internal control over financial reporting:(1) an opinion on management's assessment of the effectiveness of internal control over financial reporting and (2) an opinion on the effectiveness of the company's internal control over financial reporting" (Louwer, 2007). Can you discuss the important of this and how the two may differ? Please explain.
Reference: Louwer, T. J., Ramsay, R. J., Sinason, D. H., & Strawser J. R. (2007). Auditing and Assurance Services Chapter 12.
Assessment of internal control is a very important step in the auditing process. One very requirement of an audit is an opinion of the company's internal control. An auditor will create many tests to determine the ...
The difference between an auditor's opinion of management's assessment of internal control and the auditor's opinion of the effectiveness of internal control.