An Enterprise Engaged a CPA to Audit Its Financial Statements

question 1045

Multiple Choice

An enterprise engaged a CPA to audit its financial statements in accordance with Government Auditing Standards (the Yellow Book) because of the provisions of government grant funding agreements. Under these circumstances, the CPA is required to report on the enterprise's internal controls either in the report on the financial statements or in:

• A) The report on the performance audit.
• B) The notes to the financial statements.
• C) A letter to the government funding agency.
• D) A separate report.