Question

The standard unmodified opinion audit report for a nonpublic entity must?

1) have a report title that includes the word "CPA."
2) be addressed to the company's stockholders and creditors.
3) be dated.
4) include an explanatory paragraph.

Answer 1

The standard unmodified opinion audit report for a nonpublic entity must have a title with the word "CPA", be addressed to the company's management, be dated, and may include an explanatory paragraph if needed.

Step-by-step explanation:

The standard unmodified opinion audit report for a nonpublic entity must meet several requirements:

1. The report must have a title that includes the word "CPA" to indicate that it has been prepared by a Certified Public Accountant.
2. The report should be addressed to the company's management, not the stockholders and creditors.
3. The report must be dated to indicate when it was issued.
4. The report may include an explanatory paragraph if necessary to provide additional context or explanations.

In summary, the standard unmodified opinion audit report for a nonpublic entity must have a title with the word "CPA", be addressed to the company's management, be dated, and may include an explanatory paragraph if needed.

The standard unmodified opinion audit report for a nonpublic entity must be structured to communicate the auditor's findings regarding the financial statements of the entity. One of the requirements includes that the report must be dated, which serves to indicate when the auditor has completed the audit process and asserts the reliability of the financial statements as of that date. The title of the report typically does not need to include the term "CPA."