Question
Chemical Cleanup Corp. (CCC) engaged Charles, CPA, to audit its financial statements for the year ended July 31, Year 1 in accordance with Government Auditing
Chemical Cleanup Corp. (CCC) engaged Charles, CPA, to audit its financial statements for the year ended July 31, Year 1 in accordance with Government Auditing Standards. CCC is a not-for-profit organization that receives grants and fees from various state and municipal governments, as well as grants from several federal government agencies. The auditors' reports are to be submitted by CCC to the granting government agencies, which make the reports available for public inspection. Charles asked a staff accountant to draft a combined report on compliance and internal control over compliance reporting. This combined report, which contained the statements included in the table below, was submitted to the engagement partner for review. The partner reviewed matters thoroughly and properly concluded no material instances of noncompliance were identified and an unmodified opinion would be rendered. For each of the statements listed below, identify whether it is appropriate or inappropriate by double-clicking on the shaded cell and selecting the appropriate response.
1. A statement that the audit was conducted in accordance with generally accepted auditing standards and with Government Auditing Standards issued by the Comptroller General of the United States A statement that the compliance audit included examining on a test basis, evidence about the entity's compliance 3. A statement that the compliance audit provides a legal determination of the entity's compliance 4. A statement that the management is responsible for maintaining effective internal controls over compliance with laws, regulations, contracts and grants 5. A statement that the auditor's consideration of the entity's internal control over compliance was designed to identify all the deficiencies in internal control that might be signific ant 6. A statement that this report is intended solely for the information and use of management, and others within the entity, and should not be used by anyone other than specified parties 7. A statement defining deficiency in internal control over compliance and material weakness in internal control over compliance 8. A statement that the auditor expresses an opinion on internal control over complianceStep by Step Solution
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