An auditor has been hired to report on an nonissuer’s internal control over financial reporting. Which of the following best describes a reporting option in this scenario?
a) If management fails to provide a written representation letter acknowledging its responsibility for the effectiveness of internal control, the auditor will generally issue an unqualified opinion with additional explanatory language.
b) When a material weakness exists, the auditor should issue an adverse opinion.
c) When a significant deficiency exists, the auditor may issue either a qualified or adverse opinion.
d) If management fails to provide a written representation letter acknowledging its responsibility for the effectiveness of internal control, the auditor may issue either a qualified opinion or an adverse opinion.