Which of the following is most correct for audits of non-public companies?
A) An audit of internal control is required.
B) An audit of internal control is not required.
C) An audit of the design of internal controls is required.
D) An audit of the operational effectiveness of internal controls is required.

Question

Quizplus · Accepted Answer

An audit of internal control is not required for audits of non-public companies, according to the PCAOB standards. However, auditors are still required to assess the risks of material misstatement and design their audit procedures accordingly. They may also choose to test internal controls as a substantive procedure to obtain audit evidence, but it is not a requirement.

Which of the Following Is Most Correct for Audits of Non-Public