A CPA Has Conducted an Audit of the Financial Statements

question 29

Multiple Choice

A CPA has conducted an audit of the financial statements of an entity that received federal financial assistance and had one program that qualified as a major program. The CPA's responsibility related to reporting on compliance for this entity is to

• A) Issue a report on compliance related to the entity.
• B) Issue an opinion on compliance related to the entity.
• C) Issue a report on compliance related to the entity and a report on compliance related to the federal program(s).
• D) Issue a report on compliance related to the entity and an opinion on compliance related to the federal program(s).

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Definitions:

Fast-changing Environment

A context or situation that evolves rapidly, requiring adaptability and quick response from businesses or individuals.

Skill Type

The classification of skills based on their nature or the tasks they are used for, such as technical, soft, or hard skills.

Well-ventilated Office

Describes an office space designed to ensure ample airflow and proper circulation, promoting a healthier and more comfortable working environment.

Effort Factors

Variables that influence the amount of effort an individual puts into a task or activity.