Dunn, CPA, is auditing the financial statements of Taft Co. Taft uses Quick Service Center (QSC) to process its payroll. Price, CPA, is expressing an opinion on a description of the controls implemented at QSC regarding the processing of its customersâ€™ payroll transactions. Dunn expects to consider the effects of Priceâ€™s report on the Taft engagement. Priceâ€™s report should contain a(n)
a. Description of the scope and nature of Priceâ€™s procedures.
b. Statement that Dunn may assess control risk based on Priceâ€™s report.
c. Assertion that Price assumes no responsibility to determine whether QSCâ€™s controls are suitably designed.
d. Opinion on the operating effectiveness of QSCâ€™s internal controls.