Final answer:
In the scope paragraph of the audit report for financial statements of a nonpublic company, the auditor does not express an opinion about the internal controls of the company.
Step-by-step explanation:
In the scope paragraph of the audit report for financial statements of a nonpublic company, the auditor does not express an opinion about the internal controls of the company. This is because the scope of an audit is limited to examining the financial statements and providing an opinion on their fairness and accuracy, not the internal control system.
The auditor's opinion on the internal controls of a nonpublic company may be expressed in a separate report called a management letter or internal control letter. This report provides recommendations and suggestions to improve the internal controls of the company.
Therefore, the statement that the auditor expresses an opinion about the internal controls of a nonpublic company in the scope paragrap