Audit and Assurance Practice Exam

In an integrated audit, how must the auditor present their opinions?

1. In separate reports for clarity.

2. Only one opinion is necessary.

3. Both opinions in the same report.

4. No opinion should be included at all.

The correct answer is: Both opinions in the same report.

In an integrated audit, the auditor’s opinions are presented in a unified manner within the same report. This approach reflects the interconnected nature of the financial statements and the effectiveness of internal controls over financial reporting. By combining both opinions, the auditor provides stakeholders with a comprehensive understanding of the overall audit findings, ensuring that users can see the relationship between the financial statements and the internal control assessments. This integrated presentation enhances clarity and allows for a more holistic view of the organization’s financial reporting and control environments. Presenting both opinions in one report streamlines communication with stakeholders, allowing management, investors, and other users of the financial statements to easily understand how the internal controls affect the financial statements as a whole. Separate reports could lead to confusion and misunderstandings regarding the conclusions drawn, while opting for only one opinion misses out on providing a complete view of both the financial health and the control environment. Additionally, omitting an opinion entirely would undermine the purpose of the audit, which is to provide assurance regarding the financial information presented.