Why Is It Important for the Review Engagement Report to State

question 12

Multiple Choice

Why is it important for the review engagement report to state that the review is not an audit?

• A)to make sure that the public accountant is not sued
• B)to clarify that only review engagement procedures were used during the engagement
• C)to make users aware that a review provides a lower level of assurance
• D)so that the user does not ask any unnecessary questions about the engagement

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Definitions:

Observed Values

The actual measurements or data collected in an experiment or study.

Predicted Values

The outcomes or values estimated based on a mathematical model or prediction equation.

Y-intercept

The point on a graph where a line intersects the Y-axis, often used to represent the starting value of a relationship in linear equations.

Slope

Measures the steepness or incline of a line, calculated as the ratio of vertical change to horizontal change between any two points on the line.