During a Review of Financial Statements of a Nonpublic Entity

question 12

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.

Comprehend the relationship between variable measurement scales and the choice of graphical representation.

Understand the concepts of reliability, validity, and utility in employment selection.

Recognize the ethical and legal considerations in the administration of drug tests to job applicants.

Identify and differentiate between the various types of interviews used in employment selection.

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Definitions:

Enduring Beliefs

Long-standing convictions or values that individuals or communities hold, which guide their actions and decisions.

Organizational Principles

Fundamental concepts or rules that guide the design, operations, and practices of an organization, ensuring its proper function and efficiency.

Primary Stakeholders

Individuals or groups that are directly affected by or have a direct interest in the actions and performance of an organization, such as employees, customers, and shareholders.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, often involving equity stakes or debt financing.