A CPA Has Conducted an Audit of the Financial Statements

question 23

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 internal control for this entity is to:

• A) Issue a report on internal control relating to the financial statements.
• B) Issue an opinion on internal control relating to the financial statements.
• C) Issue a report on internal control relating to the financial statements and a report on internal control related to the federal program(s).
• D) Issue a report on internal control relating to the financial statements and an opinion on internal control related to the major program.

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Definitions:

Executive Summary

A brief section at the beginning of a business plan, document, or report, summarizing the main points and providing a comprehensive overview to readers.

Business Plan

A formal document detailing a business's goals, strategies, target market, and financial forecasts, serving as a roadmap for business development.

Entrepreneur

An individual who initiates, organizes, and operates a business venture, taking on greater than normal financial risks in order to do so.

Operations Plan

A strategic guide outlining the production or service delivery activities of a company, detailing processes, resources, and timelines.