One of the First Steps That Should Be Performed for a Review

question 4

Multiple Choice

One of the first steps that should be performed for a review of a nonpublic entity's financial statements is to

• A) read the financial statements.
• B) obtain knowledge of the accounting principles and practices of the client's industry.
• C) inquire whether management has omitted substantially all of the disclosures required by applicable accounting standards.
• D) apply analytical procedures to provide limited assurance that no material modifications should be made to the financial statements.

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Definitions:

Recall

A type of retrieval that requires you to produce an item from memory in response to a cue or question.

Junior Prom

A formal dance held for high school juniors, significant in American culture as a rite of passage for teenagers.

Memory Function

A cognitive process that involves the encoding, storing, and retrieving of information over time.

Working Memory

A mental mechanism with restricted capability, tasked with temporarily maintaining data for processing purposes.