For an entity that does not receive governmental financial assistance, an auditor's standard report on financial statements generally would not refer to:

Question

Quizplus · Accepted Answer

Choice "D" is correct. The auditor's standard report generally does not make reference to the entity's internal control. Note that for an entity that does receive governmental financial assistance, a written report on internal control is required. Also, note that an auditor may (but is not required to) expand his or her audit report to clarify that a GAAS audit does not require the level of testing and reporting on internal control that is required for issuers. Choices "A" and "B" are incorrect. The scope paragraph states that, "an audit also includes assessing the accounting principles used and significant estimates made by management." Choice "C" is incorrect. The introductory paragraph states that the "financial statements are the responsibility of the company's management."

For an Entity That Does Not Receive Governmental Financial Assistance