Which of the following items would appear in written representations in the audit of a public entity but not a nonpublic entity?
A)Statements related to management's responsibility for the entity's financial statements.
B)Statements related to management's responsibility for designing internal control to prevent and detect fraud.
C)An indication that all subsequent events have been disclosed to the auditors.
D)Management's opinion as to the effectiveness of its internal control over financial reporting.

Question

Quizplus · Accepted Answer

In the audit of a public entity, management's opinion on the effectiveness of its internal control over financial reporting is required, as per regulations like the Sarbanes-Oxley Act in the United States. This is not a requirement for nonpublic entities, which are not subject to the same level of regulatory oversight regarding their internal controls.

Which of the Following Items Would Appear in Written Representations