Snow, CPA, was engaged by Master Co. to examine and report on management's written assertion about the
Question:
Snow, CPA, was engaged by Master Co. to examine and report on management's written assertion about the effectiveness of Master's internal control over financial reporting. Snow's report should state that
a. Because of inherent limitations of internal control, errors or fraud may occur and not be detected.
b. Management's assertion is based on criteria established by the American Institute of Certified Public Accountants.
c. The results of Snow's tests will form the ba- sis for Snow's opinion on the fairness of Master's financial statements in conformity with GAAP.
d. The purpose of the engagement is to enable Snow to plan an audit and determine the na- ture, timing, and extent of tests to be per- formed.
Step by Step Answer:
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor