Snow, CPA, was engaged by Master Co., a nonissuer, to examine and report on management's written assertion about the effectiveness of Master's internal control over financial reporting. Snow's report should state that:
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a. | Because of its inherent limitations, internal control may not prevent, or detect and correct misstatements. | |
b. | Management's assertion is based on criteria established by the American Institute of Certified Public Accountants. | |
c. | The results of Snow's tests of controls will form the basis for Snow's opinion on the fairness of Master'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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