1. For a nonpublic company, which section of the audit report includes a statement that the auditor does not express an opinion on the effectiveness of internal control?

a. Basis for Opinion.

b. Opinion.

c. Auditor's responsibility.

d. Management responsibility.

e. Key Audit Matters

2. Which of the following statements is correct concerning a review of a nonpublic entity's financial statements but not a compilation of financial statements?

a. The accountant does not contemplate obtaining an understanding of the internal control structure.

b. The accountant must be independent in fact and appearance.

c. The accountant expresses no assurance on the financial statements.

d. Each page of the financial statements may be marked "see Accountant's Report."

e. Numerous GAAP disclosures may be omitted without report modification.

3. Comparative financial statements include the prior year's statements that were audited by a predecessor auditor whose report is not presented. If the predecessor's opinion was unmodified, the auditor should

a. Express an opinion on the current year's statements alone and not refer to the prior year's statements.

b. Indicate in the auditor's report that the predecessor auditor expressed an unmodified opinion.

c. Obtain a letter of representations from the predecessor concerning any matters that might affect the auditor's opinion.

d. Request the predecessor auditor to reissue the prior year's report.