Inquiry of the entity's personnel and analytical procedures are the primary bases for the issuance of a(n):
A)compilation report on financial statements for a nonpublic company in its first year of operations.
B)auditor's report on financial statements supplemented with price-level information.
C)review report on comparative financial statements for a nonpublic company in its second year of operations.
D)management advisory report prepared at the request of the entity's audit committee.

Question

Quizplus · Accepted Answer

A review report on comparative financial statements for a nonpublic company in its second year of operations is based on inquiry and analytical procedures, as stated in the question. A compilation report on financial statements for a nonpublic company in its first year of operations does not require analytical procedures, and an auditor's report on financial statements supplemented with price-level information is not solely based on personnel and analytical procedures. A management advisory report prepared at the request of the entity's audit committee is not a type of assurance service, so it is not relevant to the question.

Inquiry of the Entity's Personnel and Analytical Procedures Are the Primary