AR-C 90 Requires Adequate Documentation for a Review Engagement

question 5

Multiple Choice

AR-C 90 requires adequate documentation for a review engagement.Which items are required to be documented?

• A)Analytical procedures: Yes; Management representations: No; Understanding of internal controls: No
• B)Analytical procedures: No; Management representations: Yes; Understanding of internal controls: No
• C)Analytical procedures: Yes; Management representations: Yes; Understanding of internal controls: No
• D)Analytical procedures: Yes; Management representations: Yes; Understanding of internal controls: Yes

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Definitions:

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and government bodies.

Revenue Agency

This is a government body responsible for the administration of tax laws and the collection of taxes and other revenue.

Current Assets

Items of value that are forecasted to be liquidated, traded, or depleted within the span of one year or throughout the duration of the operational cycle, whichever timeframe is greater.

Current Liabilities

Obligations that a company expects to pay within one year or within its normal operating cycle, whichever is longer, including accounts payable, short-term loans, and other accrued liabilities.