The basis of opinion section of the audit report issued for financial statements of a nonpublic company should refer to auditing standards generally accepted in the United States of America.

Question

Quizplus · Accepted Answer

The basis of opinion section of the audit report for financial statements of a nonpublic company should refer to auditing standards generally accepted in the United States of America in order to maintain consistency and credibility in the audit process. Auditing standards provide guidelines for auditors to follow while conducting an audit, and the basis of opinion section in the audit report explains the scope of the audit, the procedures followed by the auditor, and the conclusions reached by the auditor. Therefore, the statement is true.

The Basis of Opinion Section of the Audit Report Issued