Performing Inquiry and Analytical Procedures Is the Primary Basis for an Accountant

question 1005

Multiple Choice

Performing inquiry and analytical procedures is the primary basis for an accountant to issue a:

• A) Report on compliance with requirements governing major federal assistance programs in accordance with the Single Audit Act.
• B) Review report on prospective financial statements that present an entity's expected financial position, given one or more hypothetical assumptions.
• C) Management advisory report prepared at the request of a client's audit committee.
• D) Review report on comparative financial statements for a nonissuer in its second year of operations.

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Definitions:

Silica

A hard, unreactive, colorless compound that occurs as the mineral quartz and as a principal constituent of sandstone and other rocks.

Calcium Carbonate

A chemical compound used as a dietary supplement or antacid; it's also the main component of limestone.

Spongin

A fibrous protein that makes up the skeleton of many sponges.

Spicules

Small, spike-like structures found in various organisms, such as sponges and some animals, serving as structural supports or defense mechanisms.