The review service provided by the CPA firm requires the CPA to
A)make inquiries concerning matters affecting the financial statements.
B)confirm accounts receivable.
C)test internal controls.
D)provide reasonable assurance.

Question

Quizplus · Accepted Answer

The review service provided by the CPA firm requires the CPA to make inquiries concerning matters affecting the financial statements. This is because the objective of a review engagement is to obtain limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in accordance with the applicable financial reporting framework. Making inquiries is one of the procedures that the CPA performs to obtain this limited assurance. The other options listed (confirming accounts receivable, testing internal controls, providing reasonable assurance) are more commonly associated with an audit engagement rather than a review engagement.

The Review Service Provided by the CPA Firm Requires the CPA