When auditing an entity's financial statements in accordance with Government Auditing Standards (the "Yellow Book"),an auditor is required to report on: I.Recommendations for actions to improve operations.
II)The scope of the auditor's tests of compliance with laws and regulations.
A)I only.
B)II only.
C)Both I and II.
D)Neither I nor II.

Question

Quizplus · Accepted Answer

The Yellow Book requires auditors to report on the scope of their tests of compliance with laws and regulations, but it does not require auditors to report recommendations for actions to improve operations in the financial statement audit report. Recommendations for improvements may be communicated in other ways, such as in a separate management letter.

When Auditing an Entity's Financial Statements in Accordance with Government