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

Question

Quizplus · Accepted Answer

A half-yearly review report on a comparative financial report for a public company requires an inquiry of the entity's personnel and analytical procedures as primary bases for the issuance of the report. Option A is incorrect because a financial report supplemented with price level information would require an auditor's report on applying agreed-upon procedures. Option B is incorrect because a compilation report for a non-public company in its first year of operations does not require an inquiry of the entity's personnel or analytical procedures. Option C is incorrect because a management advisory report is not based on an inquiry of the entity's personnel or analytical procedures but rather on providing advice or recommendations.

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