Which of the Following Procedures Is Not Usually Performed by the Accountant

question 68

Multiple Choice

Which of the following procedures is not usually performed by the accountant during a review engagement of a nonpublic entity?

• A)Inquiry about actions taken at meetings of the board of directors that may affect the financial statements.
• B)Issuance of a report stating that the review was performed in accordance with standards established by the AICPA.
• C)Reading of the financial statements to determine if they conform with generally accepted accounting principles.
• D)Communication of any material weaknesses discovered during the consideration of internal control.

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Definitions:

Federal

Pertaining to the central government, as opposed to state or local governments, especially regarding its relationship with the states in a federal system of government.

Taxable Personal Income

The amount of an individual's income that is subject to taxation after all deductions and exemptions, according to the governing tax laws.

Taxable Income

The portion of an individual's or entity's income used to calculate how much tax they owe to the government in a given tax year.

Deductions

Amounts that can be subtracted from total income for tax purposes, effectively reducing the taxable income.