Which of the Following Procedures Is Not Usually Performed by the Accountant

question 68

Multiple Choice

Which of the following procedures is not usually performed by the accountant during a review engagement of a nonpublic entity?

• A)Inquiry about actions taken at meetings of the board of directors that may affect the financial statements.
• B)Issuance of a report stating that the review was performed in accordance with standards established by the AICPA.
• C)Reading of the financial statements to determine if they conform with generally accepted accounting principles.
• D)Communication of any material weaknesses discovered during the consideration of internal control.

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Definitions:

Interest Rate Collar

A financial derivative strategy used to hedge interest rate movements by setting upper and lower limits on interest payments.

Variable Rate Loan

A loan where the interest rate can change over time, based on an underlying benchmark or index.

Floor Rates

The minimum interest rate agreed upon in a financial contract, below which the rate cannot fall.

Put Option

Financial contract that gives the holder the right to sell an asset at a specific price within a specified period.