Before Performing a Review of a Nonpublic Entity's Financial Statements

question 56

Multiple Choice

Before performing a review of a nonpublic entity's financial statements, an accountant should:

• A) inquire whether management has omitted substantially all of the disclosures required by generally accepted accounting principles.
• B) complete a series of inquiries concerning the entity's procedures for recording, classifying and summarising transactions.
• C) obtain a sufficient level of knowledge of the accounting policies of the industry in which the entity operates.
• D) apply analytical procedures to provide limited assurance that no material modifications should be made to the financial statements.

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Definitions:

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Western United States

A region of the United States that includes the states located west of the Mississippi River.

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