When an Independent Accountant's Report Based on a Review of Interim

question 289

Multiple Choice

When an independent accountant's report based on a review of interim financial information is presented in a registration statement, a prospectus should include a statement about the accountant's involvement. This statement should clarify that the:

• A) Accountant is not an "expert" within the meaning of the Securities Act of 1933.
• B) Accountant's review report is not a "part" of the registration statement within the meaning of the Securities Act of 1933.
• C) Accountant performed only limited auditing procedures on the interim financial statements.
• D) Accountant's review was performed in accordance with standards established by the American Institute of CPAs.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.