Inquiry and Analytical Procedures Ordinarily Performed During a Review of a Nonpublic

question 44

Multiple Choice

Inquiry and analytical procedures ordinarily performed during a review of a nonpublic entity's financial statements include:

• A) Analytical procedures designed to identify reportable conditions related to internal control.
• B) Inquiries concerning actions taken at meetings of the stockholders and the board of directors.
• C) Analytical procedures designed to test the accounting records by obtaining corroborating evidential matter.
• D) Inquiries of knowledgeable outside parties such as the client's attorneys and bankers.

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Definitions:

Appeal to Ignorance

A fallacy that occurs when a lack of evidence is presented as evidence of the truth or falsehood of a claim.

Storm

A severe weather event characterized by strong winds, rain, snow, or other forms of precipitation and disturbances.

Jupiter

The largest planet in our solar system, known for its prominent Great Red Spot.

Non Sequitur

A conclusion or statement that does not logically follow from the previous statement or argument, presenting a disconnect in reasoning.