The unmodified standard audit report of a nonpublic company does not explicitly state that:
A)The financial statements are the responsibility of the company's management.
B)The audit was conducted in accordance with accounting principles generally accepted in the United States of America.
C)The auditors believe that the audit provides a reasonable basis for their opinion.
D)An audit includes evaluating the appropriateness of accounting policies used.

Question

Quizplus · Accepted Answer

The unmodified standard audit report explicitly states that the audit was conducted in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS), not accounting principles. Accounting principles refer to GAAP (Generally Accepted Accounting Principles), which are the responsibility of the company's management to follow in preparing the financial statements.

The Unmodified Standard Audit Report of a Nonpublic Company Does