auditor’s report on the audit of internal controls

Note the following when drafting or reading a report on the audit of internal controls:

Under Opinions on the Financial Statements and Internal Control Over Financial Reporting

• Auditor’s report on the audit of internal controls must include the title - Report of Independent Registered Public Accounting Firm
• "We also have audited the Company's internal control over financial reporting" should be used in the final report - the term audited
• "Criteria established in Internal Control - Integrated Framework" by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)

​
Under Basis for Opinion

• We conducted our audits in accordance with the standards of the - Public Company Accounting Oversight Board (PCAOB)
• Standards require that we plan and perform the "AUDIT" to obtain reasonable assurance
• We believe that our audits provide a "REASONABLE" basis in our opinion

Definition and Limitations of Internal Control Over Financial Reporting

• Because of "INHERENT LIMITATIONS", internal control over financial reporting may not prevent or detect misstatements. 

​cc: Audit