Moore, CPA, Has Been Asked to Issue a Review Report

question 577

Multiple Choice

Moore, CPA, has been asked to issue a review report on the balance sheet of Dover Co., a nonissuer. Moore will not be reporting on Dover's statements of income, retained earnings, and cash flows. Moore may issue the review report provided the:

• A) Balance sheet is presented in a prescribed form of an industry trade association.
• B) Scope of the inquiry and analytical procedures has not been restricted.
• C) Balance sheet is not to be used to obtain credit or distributed to creditors.
• D) Specialized accounting principles and practices of Dover's industry are disclosed.

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Definitions:

Femur

The longest and strongest bone in the human body, located in the thigh.

Fibula

A long, thin bone located on the lateral side of the tibia in the lower leg.

Ankle Bones

The bones that form the joint connecting the foot to the leg, including the tibia, fibula, and talus.

Nasal Cavity

The large air-filled space above and behind the nose in the middle of the face, involved in breathing and smelling.