Audit and Assurance Practice Exam

The auditor should conclude that management's report on Internal Control over Financial Reporting (ICFR) may require modifications because the accuracy and completeness of such reports can vary based on numerous factors. Management is responsible for establishing and maintaining ICFR, which means the report needs to faithfully represent the effectiveness of these controls. However, the auditor's role includes evaluating whether the report accurately reflects the internal controls and if it provides a complete view of the effectiveness of those controls.

If the auditor identifies any gaps or weaknesses in the management report during their evaluation, it may necessitate adjustments to ensure it aligns with the findings from their audit procedures. This approach emphasizes the importance of the auditor's independent assessment in determining the reliability of the management report, acknowledging that the report might not inherently provide a full picture without further review or changes.

Ultimately, these findings underscore the collaborative nature of the audit process, where management and the auditor must work together to ensure the integrity and comprehensiveness of the report on ICFR.