The public company audit report is most likely to have a section with the title of:
A)Critical Audit Matters.
B)Management Responsibilities.
C)Shareholder Responsibilities.
D)Type of Conclusion.

Question

Quizplus · Accepted Answer

The Public Company Accounting Oversight Board (PCAOB) requires the inclusion of a section on Critical Audit Matters (CAMs) in the auditor's report for audits of large public companies. CAMs are matters that are communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved complex, subjective, or challenging auditor judgment. Therefore, the most likely section title in the public company audit report is Critical Audit Matters (option A). The other options are not required to be included in the auditor's report.

The Public Company Audit Report Is Most Likely to Have