Auditors consider internal control during the audit of a nonpublic company:
A) For all the same purposes as on an audit of a public company.
B) To identify areas of risk and help to plan the financial statement audit.
C) To help to plan the financial statement audit and issue an opinion on effectiveness.
D) Only if they are sure it will be helpful when performing the financial statement audit.

Question

Quizplus · Accepted Answer

Auditors consider internal control during the audit of a nonpublic company to identify areas of risk and help to plan the financial statement audit. They do not issue an opinion on the effectiveness of the internal control system like in the case of public company audits. Auditors should always consider internal control since it helps them to design and plan an effective audit procedure.

Auditors Consider Internal Control During the Audit of a Nonpublic