When Providing Limited Assurance That the Reviewed Financial Statements of a Nonpublic

question 43

Multiple Choice

When providing limited assurance that the reviewed financial statements of a nonpublic entity require no material modifications to be in accordance with generally accepted accounting principles,the accountant should

• A) Assess the risk that a material misstatement could occur in a financial statement assertion.
• B) Confirm with the entity's lawyer that material loss contingencies are disclosed.
• C) Understand the accounting principles of the industry in which the entity operates.
• D) Develop audit plans to determine whether the entity's financial statements are fairly presented.

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Definitions:

Unalterable

Incapable of being changed or modified.

Media

Channels or systems of communication that distribute information and entertainment to a wide audience.

Real World

The sphere of everyday life and experiences outside of fictional, virtual, or theoretical environments.

Ideology

A system of ideas, beliefs, and values that shapes the way individuals or groups see the world and influences their behavior and decisions.