Does a qualified opinion on management's assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Explain.
What will be an ideal response?
No. Auditors are permitted to simultaneously render a qualified opinion on management's assessment of internal controls and an unqualified opinion on the financial statements. In other words, it is technically possible for auditors to find internal controls over financial reporting to be weak, but conclude through substantive tests that the weaknesses did not cause the financial statements to be materially misrepresented.
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