When performing an engagement to review a nonissuer's financial statements, an accountant most likely would:

Question

Quizplus · Accepted Answer

Choice "D" is correct. A review is based on inquiry and analytical procedures. The accountant should inquire about actions authorized by the stockholders, the board of directors, or other management groups. Choice "A" is incorrect. The accountant is not required to obtain an understanding of internal control in a review engagement under SSARS. An understanding would be required in an audit or in a review of the interim financial statements of a public entity, conducted under auditing (PCAOB) standards. Choice "B" is incorrect. Distribution of a review report is not limited; however, each page of the financial statements should be marked, "See Accountant's Review Report." Choice "C" is incorrect. Confirmation is an auditing procedure used to corroborate stated account balances. A review is based on inquiry and analytical procedures, and would not include confirmation of balances.

When Performing an Engagement to Review a Nonissuer's Financial Statements