Page 155 - Auditing Standards

As of December 15, 2017
.82 The auditor is not required to perform procedures that are sufficient to identify all control deficiencies;

rather, the auditor communicates deficiencies in internal control over financial reporting of which he or she is
aware.

.83 Because the audit of internal control over financial reporting does not provide the auditor with

assurance that he or she has identified all deficiencies less severe than a material weakness, the auditor
should not issue a report stating that no such deficiencies were noted during the audit.

.84 When auditing internal control over financial reporting, the auditor may become aware of fraud or
possible illegal acts. In such circumstances, the auditor must determine his or her responsibilities under AS
2401, AS 2405, Illegal Acts by Clients, and Section 10A of the Securities Exchange Act of 1934. 17

Reporting on Internal Control

.85 The auditor's report on the audit of internal control over financial reporting includes the following
elements 18 -

Title

.85A The auditor's report must include the title, "Report of Independent Registered Public Accounting
Firm."

Addressee

.85B The auditor's report must be addressed to the shareholders and the board of directors, or
equivalents for companies not organized as corporations. The auditor's report may include additional

addressees.

Opinion on the Internal Control over Financial Reporting

.85C The first section of the auditor's report on the audit of internal control over financial reporting must
include the section title "Opinion on Internal Control over Financial Reporting" and the following elements-

a. The name of the company whose internal control over financial reporting was audited; and

b. The auditor's opinion on whether the company maintained, in all material respects, effective internal

control over financial reporting as of the specified date, based on the control criteria.

Basis for Opinion

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