Audit reports issued for financial statements of a private company should refer to generally accepted auditing standards in the scope paragraph.

Question

Quizplus · Accepted Answer

Audit reports for financial statements of a private company are required to comply with generally accepted auditing standards, which are referenced in the scope paragraph of the report. This provides assurance that the audit was conducted in accordance with industry-recognized standards and enhances the credibility of the financial statements.

Audit Reports Issued for Financial Statements of a Private Company