Page 160 - Auditing Standards

As of December 15, 2017
Report Date

.89 The auditor should date the audit report no earlier than the date on which the auditor has obtained
sufficient appropriate evidence to support the auditor's opinion. Because the auditor cannot audit internal
control over financial reporting without also auditing the financial statements, the reports should be dated the

same.

Material Weaknesses

.90 Paragraphs .62 through .70 describe the evaluation of deficiencies. If there are deficiencies that,
individually or in combination, result in one or more material weaknesses, the auditor must express an
adverse opinion on the company's internal control over financial reporting, unless there is a restriction on the
scope of the engagement. 19

.91 When expressing an adverse opinion on internal control over financial reporting because of a material
weakness, the auditor's report must include -

The definition of a material weakness, as provided in paragraph .A7.

A statement that a material weakness has been identified and an identification of the material
weakness described in management's assessment.

Note: If the material weakness has not been included in management's assessment, the report

should be modified to state that a material weakness has been identified but not included in
management's assessment. Additionally, the auditor's report should include a description of the
material weakness, which should provide the users of the audit report with specific information

about the nature of the material weakness and its actual and potential effect on the presentation
of the company's financial statements issued during the existence of the weakness. In this case,
the auditor also should communicate in writing to the audit committee that the material weakness
was not disclosed or identified as a material weakness in management's assessment. If the

material weakness has been included in management's assessment but the auditor concludes
that the disclosure of the material weakness is not fairly presented in all material respects, the
auditor's report should describe this conclusion as well as the information necessary to fairly

describe the material weakness.

.92 The auditor should determine the effect his or her adverse opinion on internal control has on his or

her opinion on the financial statements. Additionally, the auditor should disclose whether his or her opinion on
the financial statements was affected by the adverse opinion on internal control over financial reporting.

Note: If the auditor issues a separate report on internal control over financial reporting in this circumstance,

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