An Accountant's Review Engagement Report Would NOT Include a Statement

question 56

Multiple Choice

An accountant's review engagement report would NOT include a statement that ________.

• A)the engagement was performed in accordance with generally accepted auditing standards (GAAS)
• B)an accountant reviews information supplied by the company
• C)a review does not constitute an audit and an audit opinion is not expressed on the financial statements
• D)the accountant is not aware of any material departure from generally accepted accounting standards (GAAP)

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Definitions:

Note

An instrument of debt that specifies the terms under which monies are borrowed and must be repaid, including interest rates and due date.

Notes Receivable

Written promises for amounts to be received within a certain period, recognized as assets on the balance sheet.

Contingent Liability

A potential obligation that depends on a future event arising from past transactions or events.

Allowance For Doubtful Accounts

A contra-asset account that represents the estimated amount of receivables which are not expected to be collected.