State whether you agree (A) or disagree (D) with each of the following statements concerning the auditors’ standard report of a nonpublic company.
Agree (A) or
Statement Disagree (D)
a. The report should begin with “CPA’s Report” at the top.
b. The report is ordinarily addressed “to whom it may concern.”
c. The report indicates that management is responsible for the preparation of the financial statements.
d. The report indicates that the auditors’ responsibility is to obtain particular assurance about whether the financial statements are free of material misstatements.
e. The report ordinarily concludes on whether the financial statements are in conformity with generally accepted auditing standards.
f. The report indicates that the audit procedures selected depend on the auditors’ judgment.
g. The report indicates that the audit evidence obtained is sufficient and appropriate to provide a basis for the audit opinion.
h. The report indicates that the auditors consider and provide an opinion on internal control.