When providing limited assurance that the reviewed financial statements of a nonpublic entity require no material modifications to be in accordance with generally accepted accounting principles,the accountant should
A)assess the risk that a material misstatement could occur in a financial statement assertion.
B)confirm with the entity's lawyer that material loss contingencies are disclosed.
C)understand the accounting principles of the industry in which the entity operates.
D)develop audit plans to determine whether the entity's financial statements are fairly presented.

Question

Quizplus · Accepted Answer

The accountant should understand the accounting principles of the industry in which the entity operates to provide limited assurance that the financial statements require no material modifications. This understanding helps in evaluating whether the financial statements are in accordance with generally accepted accounting principles.

When Providing Limited Assurance That the Reviewed Financial Statements of a Nonpublic