Snow, CPA, Was Engaged by Master Co

question 43

Multiple Choice

Snow, CPA, was engaged by Master Co., a privately-held company, 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

• A) Because of inherent limitations of any internal controls, errors or fraud may occur and not be detected.
• B) Management's assertion is based on criteria established by the American Institute of Certified Public Accountants.
• C) The results of Snow's tests 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.