Which of the Following Statements Is Correct Regarding a Review

question 609

Multiple Choice

Which of the following statements is correct regarding a review engagement of a nonissuer's financial statements performed in accordance with the Statements on Standards for Accounting and Review Services (SSARS) ?

• A) An accountant must establish an understanding with the client in an engagement letter.
• B) An accountant must obtain an understanding of the client's internal control when performing a review.
• C) A review provides an accountant with a basis for expressing limited assurance on the financial statements.
• D) A review report contains an accountant's opinion of the financial statements taken as a whole.

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Definitions:

External Attribution

The process of attributing one's behavior to external factors or situations outside the individual’s control.

Social Psychology

The study of how people think about, influence, and relate to other people.

Social Cognition

The area of social psychology exploring how people select, interpret, remember, and use social information.

Stereotype

A generalization about a group’s characteristics that does not consider any variations from one individual to another.