The unmodified standard audit report of a nonpublic company does not explicitly state that:
A) The financial statements are the responsibility of the company's management.
B) The audit was conducted in accordance with accounting principles generally accepted in the United States of America.
C) The auditors believe that the audit provides a reasonable basis for their opinion.
D) An audit includes assessing the accounting principles used.

Question

Quizplus · Accepted Answer

The unmodified standard audit report states that the audit was conducted in accordance with generally accepted auditing standards (GAAS), not accounting principles generally accepted in the United States of America (GAAP).

The Unmodified Standard Audit Report of a Nonpublic Company Does