An assurance report on internal control structures is least likely to be issued as a result of a:
A)review of the annual financial report of a large company.
B)performance audit of a government agency.
C)special study of related party transactions.
D)special study of a proposed system involving the internal control structure.

Question

Quizplus · Accepted Answer

An assurance report on internal control structures is typically issued as a result of an examination of internal controls conducted for a specific purpose, such as a special study of related party transactions, or a performance audit of a government agency. Reviewing the annual financial report of a large company is a routine audit that may include an assessment of internal controls, but it is less likely to result in the issuance of an assurance report. Similarly, a special study of a proposed system involving the internal control structure may or may not lead to the issuance of such a report depending on the nature and scope of the study.

An Assurance Report on Internal Control Structures Is Least Likely