Moore, CPA, has been asked to issue a review report on the balance sheet of Dover Co., a nonissuer. Moore will not be reporting on Dover's statements of income, retained earnings, and cash flows. Moore may issue the review report provided the:

Question

Quizplus · Accepted Answer

Choice "B" is correct. An accountant may issue a review report on one financial statement, such as a balance sheet, and not on other related financial statements, if the scope of the accountant's inquiry and analytical procedures has not been restricted. Choice "A" is incorrect. The balance sheet need not be presented in a prescribed form of an industry trade association. Choice "C" is incorrect. There is no limitation on the use of a reviewed financial statement. Choice "D" is incorrect. Specialized accounting principles should be considered by the accountant when performing the review, but need not be disclosed.

Moore, CPA, Has Been Asked to Issue a Review Report