An audit of a non-public firm is identical to that for a public firm.

Question

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An audit of a non-public firm is not identical to that for a public firm. Public firms are subject to additional regulations and reporting requirements, such as the Sarbanes-Oxley Act and the Securities and Exchange Commission (SEC) rules. Non-public firms may have less stringent requirements, but the auditor's objective is still to provide an opinion on the financial statements' accuracy and adherence to accounting standards.

An Audit of a Non-Public Firm Is Identical to That