In reporting on a nonpublic entity's internal control over financial reporting,an accountant should include a paragraph that describes the
A)documentary evidence regarding the control environment factors.
B)changes in the entity's internal control since the prior report.
C)potential benefits from the accountant's suggested improvements.
D)inherent limitations of internal control.

Question

Quizplus · Accepted Answer

The inherent limitations of internal control should be included in the report as it helps users of the financial statements understand the potential risks and limitations of relying solely on internal control to prevent and detect fraud or errors. The other options do not necessarily provide relevant information for reporting on internal control over financial reporting.

In Reporting on a Nonpublic Entity's Internal Control Over Financial