During a Review of Financial Statements of a Nonpublic Entity

question 3

Multiple Choice

During a review of financial statements of a nonpublic entity, the CPA would be least likely to:

• A)perform analytical procedures designed to identify relationships that appear to be unusual.
• B)obtain written confirmation from banks regarding loans to the entity.
• C)obtain reports from other accountants who reviewed a portion of the total entity.
• D)read the financial statements and consider their conformance with generally accepted accounting principles.

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Definitions:

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often leading to riskier or more conservative outcomes depending on the context.

Homophobic

Exhibiting or characterized by prejudice against homosexual people.

Deindividuation

A psychological state characterized by lowered self-consciousness, decreased sense of personal responsibility, and increased behavior in line with group norms, often seen in large groups or anonymous contexts.