12. The concept of materiality is NOT an important factor in determining which type of modified report to issue. A. True B. False 13. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. A. True B. False 14. The auditor should consider modifying the opinion if the management refuses to sign the updated representation letter. A. True B. False 15. Auditors of public companies can perform an integrated audit, which means performing the financial statement audit and the audit of the effectiveness of the internal control over financial reporting (ICFR) at the same time. A. True B. False 16. Adverse opinions on the effectiveness of internal control over financial reporting (ICFR) are frequently issued for large, well-established companies. A. True B. False 17. In a compilation engagement, the CPA will assist management in the presentation of financial statements and will provide assurance as to whether the financial statements are presented fairly in accordance with the applicable financial reporting framework. A. True B. False