Question

In which the auditors’ report on internal control over financial reporting would be modified?

Answer 1

Solution. An organization operating business in today's global economic market needs to prepare financial statements and social accounting to sustain. Audit ensures the credibility of such statements to reflect organization's true financial position and facilitates in decision making for both internal and external users.

According to the given question, the standard report on internal control over financial report would be modified under established rules and regulations as such are required to provide error free statements and fraudulent activities inside an organization for management to meet objectives effectively and efficiently. If there exists any material weaknesses in an organization's reports during an accounting period, internal control will fail to be effective.