Lorien Corp., a client, has received a research grant from the federal government. As a condition of...

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Accounting

Lorien Corp., a client, has received a research grant from thefederal government. As a
condition of the grant, the government requires a report onmanagement’s assertion about the
effectiveness of the company’s internal control using aprescribed form that addresses only
certain criteria. If the accountant discovers a materialweakness not addressed by the
government form, (s)he should
A. Not assume responsibility for the comprehensiveness of theagency’s criteria.
B. Not include this information because it is outside theestablished criteria.
C. Not include this information but inform management of theweakness.
D. Include all information in a standard report based on anaudit in accordance with GAAS
because the government’s criteria are too limited.

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4.4 Ratings (632 Votes)

As per the Generally Accepted Auditing principles the auditor has to maintain confidentiality of all the information obtained during the audit If the auditor comes across any weakness he has to inform the management or those See Answer

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