In an audit report on the effectiveness of ICFR for a public company, what does the scope paragraph explain?
A)The auditors conducted their audit in accordance with the standards of the PCAOB.
B)An internal control system does not eliminate all risk associated with the preparation of financial statements.
C)A material misstatement of the financial statements will not be prevented or detected on a timely basis.
D)Circumstances may change in the future and render controls ineffective if the controls are not modified appropriately.

Question

Quizplus · Accepted Answer

The scope paragraph in an audit report on the effectiveness of Internal Control over Financial Reporting (ICFR) for a public company explains that the auditors conducted their audit in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB), setting the framework and guidelines under which the audit was performed.

In an Audit Report on the Effectiveness of ICFR for a Public