The first paragraph of the combined audit report on financial statements and internal controls:
A)describes how the audit was performed in accordance with GAAP and other auditing standards.
B)describes a system of internal controls.
C)describes inherent limitations in a system of internal controls.
D)identifies the company and financial statements audited.

Question

Quizplus · Accepted Answer

The first paragraph of the combined audit report on financial statements and internal controls typically identifies the company and financial statements that were audited. This is important information for the reader to know before diving into the details of the report. While other topics may be mentioned in the first paragraph, such as the auditor's responsibilities, the company's responsibilities, and the applicable financial reporting framework, these are usually covered in subsequent paragraphs.

The First Paragraph of the Combined Audit Report on Financial