In an audit report on the effectiveness of ICFR for a public company, what does the definition and inherent limitations paragraph provide?
A)definition of ICFR that is taken directly from PCAOB AS 2201
B)indication that the firm is registered with the PCAOB
C)different responsibilities of management and auditors
D)process of conducting an audit of the effectiveness of ICFR

Question

Quizplus · Accepted Answer

The definition and inherent limitations paragraph in an audit report on the effectiveness of ICFR (Internal Control over Financial Reporting) provides the definition of ICFR that is taken directly from PCAOB (Public Company Accounting Oversight Board) Auditing Standard 2201. This helps ensure a common understanding of what ICFR entails and its scope.

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