In the scope paragraph of the audit report issued for financial statements of a nonpublic company,the auditor expresses an opinion about the internal controls of the company.

Question

Quizplus · Accepted Answer

The scope paragraph of an audit report for a nonpublic company only expresses an opinion on the financial statements, not the internal controls. However, the auditor may still assess and report on the effectiveness of the company's internal controls as a separate engagement.

In the Scope Paragraph of the Audit Report Issued for Financial