Which One of the Following Statements Is False Regarding a Review

question 16

Multiple Choice

Which one of the following statements is false regarding a review?

• A) A review involves assessing fraud risk.
• B) A review does not involve obtaining an understanding of the entity's internal control.
• C) A review does not involve testing accounting records by obtaining sufficient appropriate evidence through inspection, observation, confirmation, or examining source documents.
• D) A review does not involve a practitioner obtaining assurance that he or she will become aware of all significant matters that would be investigated in an audit.

---

Definitions:

November and December Sales

Refers to the revenue generated from the sale of goods or services during the months of November and December, often a significant period for retailers due to holiday shopping.

Department Store

A large retail store offering a wide range of products and brands under one roof, organized into departments for shopper convenience.

Toy Manufacturer

A business involved in the design, production, and marketing of toys for children and sometimes adults.

Trucking Company

A business entity that specializes in transporting goods across distances using trucks.