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:

English Civil War

A series of armed conflicts and political machinations between Parliamentarians ("Roundheads") and Royalists ("Cavaliers") in England in the mid-17th century, leading to the trial and execution of Charles I, the dictatorship of Oliver Cromwell, and eventually the restoration of the monarchy.

Magna Carta

A charter of liberties agreed to by King John of England in 1215, considered a foundational document establishing principles of legal authority and individual rights.

Liberties

The state in which one lives without facing harsh restrictions from those in authority on their personal behaviors, lifestyle, or political leanings.

Lords and Barons

Titles in nobility, historically associated with individuals who possess particular ranks in the feudal system, owning land and owing allegiance to a higher lord or the monarch.