The report of a CPA on a review of the financial statements of a nonpublic entity should not include a statement that:
A)management is responsible for the preparation and fair presentation of the financials in accordance with GAAP.
B)the review was performed in accordance with generally accepted auditing standards.
C)the CPA is not aware of any material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles.
D)a review consists principally of inquiries of company personnel and analytical procedures applied to financial data.

Question

Quizplus · Accepted Answer

The report of a review does not state that the review was performed in accordance with generally accepted auditing standards. Reviews are performed in accordance with generally accepted review standards, not auditing standards. Therefore, this statement would be inaccurate and should not be included in the report.

The Report of a CPA on a Review of the Financial