An Accountant Has Been Asked to Issue a Review Report

question 1038

Multiple Choice

An accountant has been asked to issue a review report on the balance sheet of a nonissuer but not to report on the other basic financial statements. The accountant may not do so:

• A) Because compliance with this request would result in a violation of the ethical standards of the profession.
• B) Because compliance with this request would result in an incomplete review.
• C) If the review of the balance sheet discloses material departures from GAAP.
• D) If the scope of the inquiry and analytical procedures has been restricted.

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Definitions:

Word Combinations

The process of forming phrases or sentences by putting words together according to the rules of grammar and syntax.

Unnecessary Words

Words in speech or writing that do not add significant meaning or value to the message being conveyed.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, where infants learn about the world through their senses and actions.

Cognitive Development

Refers to the progression of thinking, problem solving, and decision-making abilities from childhood through adolescence to adulthood.