Which of the following procedures should an accountant perform during an engagement to review the financial statements of a nonpublic entity?
A) Communicate reportable conditions discovered during the assessment of control risk.
B) Send bank confirmation letters to the entity's financial institutions.
C) Obtain a client representation letter from members of management.
D) Examine cash disbursements in the subsequent period for unrecorded liabilities.
E) Prepare the end-of-the-year bank reconciliation.

Question

Quizplus · Accepted Answer

During a review engagement, the accountant should obtain a client representation letter from members of management. This letter provides written representations from management about the accuracy and completeness of the financial statements and related information. It is a standard part of the review process to help the accountant obtain sufficient appropriate evidence to support their review report. The other choices are not procedures typically performed during a review engagement.

Which of the Following Procedures Should an Accountant Perform During