Which of the following best describes a CA's engagement to report on an entity's internal controls over financial reporting?

Question

Quizplus · Accepted Answer

A CA's engagement to report on an entity's internal controls over financial reporting typically involves an assurance engagement to examine and report on management's written assertions about the effectiveness of its internal control system, as required by auditing standards. This is known as an attestation engagement or an audit of internal control over financial reporting. Option B is incorrect because the CA is not rendering an opinion on the entity's financial statements, but rather on its internal control system. Option C is incorrect because this is not a prospective engagement, but rather a current assessment of the effectiveness of internal controls. Option D is incorrect because this is not a consulting engagement where the CA provides constructive advice, but rather an assurance engagement where the CA provides an opinion on the effectiveness of the internal control system.

Which of the Following Best Describes a CA's Engagement to Report