According to PCAOB AS 2201, _______.
A)publicly traded companies are required to have an audit of the effectiveness of internal control over financial reporting (ICFR)
B)privately traded companies are required to have an audit of the effectiveness of internal control over financial reporting (ICFR)
C)companies should provide clear note disclosures for any change in inventory method
D)companies should clearly disclose which financial investments are being accounted for at fair value

Question

Quizplus · Accepted Answer

PCAOB AS 2201 requires publicly traded companies to have an audit of the effectiveness of internal control over financial reporting (ICFR). Option B is incorrect because privately traded companies are not required to have an audit of ICFR. Options C and D are incorrect because they refer to disclosure requirements that are covered under different accounting standards and not under PCAOB AS 2201.