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Exit VCEDump CPA-TEST Certified Public Accountant Test: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, Regulation

Q36 Single choice

Snow, CPA, was engaged by ABC Co., a nonissuer, to examine and report on management's written assertion about the effectiveness of ABC's internal control over financial reporting. Snow's report should state that:

A
Because of inherent limitations of any internal control, errors or fraud may occur and not be detected.
B
Management's assertion is based on criteria established by the American Institute of Certified Public
Accountants.
C
The results of Snow's tests will form the basis for Snow's opinion on the fairness of ABC's financial
statements in conformity with GAAP.
D
The purpose of the engagement is to enable Snow to plan an audit and determine the nature, timing,
and extent of tests to be performed.

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