When communicating internal control related matters noted in an audit of a nonissuer, an auditor's report issued on significant deficiencies should indicate that:
　　a.A material weakness exists when the deficiencies noted were not detected within a timely period by employees in the normal course of performing their assigned functions.
　　b.Errors or fraud may occur and not be detected because there are inherent limitations in any internal control.
　　c.The issuance of an unmodified opinion on the financial statements may be dependent on corrective follow-up action.
　　d.The purpose of the audit was to report on the financial statements and not to provide assurance on internal control.
　　Answer:D
　　Choice "d" is correct. Any report issued on significant deficiencies should indicate that the purpose of the audit was to report on the financial statements and not to provide assurance on internal control.
　　Choice "b" is incorrect. A statement that errors or irregularities may occur and not be detected due to inherent limitations in internal control is included in the report when an auditor is engaged to express an opinion on internal control, not when the auditor is reporting as part of an audit.
　　Choice "c" is incorrect. The issuance of an unmodified opinion on the financial statements is never dependent on corrective follow-up action.
　　Choice "a" is incorrect. A control deficiency (and not necessarily a material weakness) exists when deficiencies are not detected within a timely period by employees in the normal course of performing their assigned functions.