Under PCAOB standards,
A) the standard unmodified opinion audit report is referred to as an unqualified opinion audit report.
B) the scope paragraph states that the financial statements are the responsibility of management.
C) internal controls of a public company must be audited every five years.
D) the scope paragraph is the same as the scope paragraph for private companies.

Question

Quizplus · Accepted Answer

PCAOB standards refer to the standard unmodified opinion audit report as an unqualified opinion audit report.

B is incorrect because while the scope paragraph does state that the financial statements are the responsibility of management, this is not the only content included in the scope paragraph.

C is also incorrect because while PCAOB standards do require auditors to evaluate internal controls, they do not specify a specific timeframe for how often this should be done.

D is incorrect because the scope paragraph for public companies includes additional requirements such as a statement about the auditor's responsibility to express an opinion on internal controls.

Under PCAOB Standards