Explanation

Analysis of both statements:

Statement 1: "The audit opinion is unlikely to provide timely information"

• ACCURATE: Audit opinions are typically issued after the fiscal year-end, often several months later. This means they provide historical information rather than real-time or forward-looking insights into current reporting risks.

Statement 2: "Internal controls over financial reporting are out of scope of audit opinions"

• INACCURATE: This statement is false. Under modern auditing standards (such as PCAOB standards in the US), auditors are required to evaluate and report on internal controls over financial reporting. In fact, for public companies, auditors must issue an opinion on the effectiveness of internal controls as part of their audit.

Therefore, only Statement 1 is accurate. Statement 2 is incorrect because internal controls are very much within the scope of audit opinions, particularly for public companies where auditors must provide an opinion on internal control effectiveness.