Hickory Company, whose financial statements are unaudited, has engaged an auditor to make a special review and report on Hickory's internal accounting control.In general, to which of the following will this report be LEAST useful?
A) the independent auditor of Hickory's parent company
B) a regulatory agency having jurisdiction over Hickory
C) Hickory's management
D) present and prospective customers

Question

Quizplus · Accepted Answer

Reports on internal accounting control are primarily useful for the entity's management, its auditors, and regulatory agencies to assess the effectiveness of the internal control system. Present and prospective customers are generally less interested in the specifics of internal accounting controls, as their focus tends to be on the quality, reliability, and price of the products or services offered rather than the company's internal accounting practices.

Hickory Company, Whose Financial Statements Are Unaudited, Has Engaged an Auditor