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.