Shareholders use audit reports to monitor management performance. An example of an item that an audit report does NOT provide is:
A) Reasonable assurance on reported information that might be used to provide justification for management's performance-based compensation.
B) Access to foreign markets.
C) An indication of whether or not a company has major in its internal control over financial reporting.
D) Feedback on any ICFR material weaknesses that management may choose to use to improve operational or financial efficiency.

Question

Quizplus · Accepted Answer

An audit report does not provide access to foreign markets. The other options describe items that could be included in an audit report, such as providing reasonable assurance on reported information, indicating whether or not a company has material weaknesses in its internal control over financial reporting, and giving feedback on such weaknesses that management could use to improve operational or financial efficiency.

Shareholders Use Audit Reports to Monitor Management Performance