Before Performing a Review of a Nonissuer's Financial Statements, an Accountant

question 380

Multiple Choice

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

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

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Definitions:

Counter-Attitudinal Advocacy

The practice of advocating or arguing for a viewpoint that contrasts with one's personal beliefs, often used in persuasion and attitude change experiments.

Refutational Argument

An argumentative strategy where a speaker or writer acknowledges and then systematically refutes opposing viewpoints.

Source Attractiveness

The degree to which the source of a message is perceived as appealing, which can affect the recipient's acceptance of the message.

Mere Exposure

A psychological phenomenon where individuals develop a preference for things because they are familiar with them.