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:

Strategies

Plans, methods, or series of maneuvers for obtaining a specific goal or result.

Union

An organization formed by workers in various trades or professions to protect and advance their rights and interests.

Picket Line

A boundary established by workers on strike, especially at the entrance to the place of work, meant to demonstrate grievance against the employer or to deter others from entering the site.

Negotiations

The process by which parties discuss and arrive at a mutual agreement on matters of common interest.