The scope paragraph of the auditor's responsibility section of the audit report issued for financial statements of a nonpublic company should refer to auditing standards generally accepted in the United States of America.

Question

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This statement is true. The scope paragraph of the auditor's responsibility section should refer to auditing standards generally accepted in the United States of America, as well as any additional requirements specific to the engagement or the company being audited. This information provides users of the audit report with an understanding of the procedures performed by the auditor and the level of assurance provided by the audit.

The Scope Paragraph of the Auditor's Responsibility Section of the Audit