An accountant is asked to issue a review report on the balance sheet, but not on other related statements. The scope of the inquiry and analytical procedures has not been restricted, but the client failed to provide a representation letter. Which of the following should the accountant issue under these circumstances?

Question

Quizplus · Accepted Answer

Choice "D" is correct. A management representation letter is required for a review engagement. If no representation letter is provided, the review is incomplete and a no review report may be issued. Since there is no requirement for a representation letter in relation to a compilation engagement, the engagement may be changed to a compilation engagement (with the client's consent). Choices "A", "B", and "C" are incorrect. Incomplete reviews do not result in any sort of modification to the review report; rather, no review report may be issued.

An Accountant Is Asked to Issue a Review Report on the Balance