If a Nonissuer Wants an Accountant to Perform an Examination

question 72

Multiple Choice

If a nonissuer wants an accountant to perform an examination of its internal controls,the accountant should follow

• A) PCAOB AS 5, "An Audit of Internal Control over Financial Reporting That Is Integrated with an Audit of Financial Statements."
• B) AICPA AT 501, "An Examination of an Entity's Internal Control over Financial Reporting That Is Integrated with an Audit of Its Financial Statements."
• C) AICPA AU315, "Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement."
• D) FASB Concepts Statement No.1, "Objectives of Financial Reporting by Business Enterprises."

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Definitions:

Alternate-Forms Reliability

A measure of consistency across different versions of the same test, ensuring similar outcomes.

Different Versions

Variations or alternative forms of something, often implying modifications or updates.

Independent Variable

In an experiment, the variable that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

In an experiment, the variable that is being tested and measured, often to see if it is affected by changes in another variable (the independent variable).