Which of the following conditions is necessary for a practitioner to accept an attest engagement to examine and report on a nonissuer's internal control over financial reporting?
A.
The practitioner anticipates relying on the entity's internal control in a financial statement audit.
B.
Management presents its written assertion about the effectiveness of internal control.
C.
The practitioner is a continuing auditor who previously has audited the entity's financial statements.
D.
Management agrees not to present the practitioner's report in a general-use document to stockholders.
Suggested Answer:B🗳️
Choice "B" is correct. In order for a practitioner to examine and report on management's assertion about the effectiveness of an entity's internal control, management must present its written assertion about the effectiveness of internal control. Choice "A" is incorrect. The examination may be made separately from or in conjunction with an audit, and there is no requirement that the practitioner rely on internal control. Choice "C" is incorrect. No requirement for previous engagement experience exists in order to report on a client's internal control. Choice "D" is incorrect. The practitioner's report is considered appropriate for general distribution.
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