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) A regulatory agency having jurisdiction over Hickory
B) Present and prospective customers
C) Hickory's management
D) The independent auditor of Hickory's parent company

Question

Quizplus · Accepted Answer

The report on internal accounting control will be least useful to present and prospective customers as it is more focused on the internal operations of the company rather than its external relationships. The report would be more useful to regulatory agencies and Hickory's management as it can help ensure compliance and improve internal processes. It could also be useful to the independent auditor of Hickory's parent company in understanding the overall financial health of the company.

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