If a nonissuer wants an accountant to perform an examination of its internal controls,the accountant should follow
A) PCAOB AS 5, "An Audit of Internal Control over Financial Reporting That Is Integrated with an Audit of Financial Statements."
B) AICPA AT 501, "An Examination of an Entity's Internal Control over Financial Reporting That Is Integrated with an Audit of Its Financial Statements."
C) AICPA AU315, "Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement."
D) FASB Concepts Statement No.1, "Objectives of Financial Reporting by Business Enterprises."

Question

Quizplus · Accepted Answer

AICPA AT 501 is the authoritative guidance for an accountant to perform an examination of a nonissuer's internal control over financial reporting that is integrated with an audit of its financial statements. It sets the standards and provides guidance on the procedures to be followed during the examination. PCAOB AS 5 is applicable for public companies, while AICPA AU315 pertains to the auditor's understanding of the entity and its environment and assessing the risks of material misstatement, which is not specific to internal controls. FASB Concepts Statement No.1 outlines the objectives of financial reporting but is not specific to internal controls. Therefore, the best choice for this scenario is B.

If a Nonissuer Wants an Accountant to Perform an Examination