Which of the following procedures should an accountant perform during an engagement to review the financial statements of a private company?
A)Communicate internal control system weaknesses that were discovered during the assessment of control risk.
B)Obtain a letter of representation signed by top-level management.
C)Send bank confirmations to the company's financial institutions.
D)Examine cash disbursements in the subsequent period for evidence of unrecorded liabilities.

Question

Quizplus · Accepted Answer

Obtaining a letter of representation signed by top-level management is a standard procedure during a review engagement to ensure that management acknowledges their responsibility for the financial statements and provides a statement of any known or potential misstatements. Communicating internal control system weaknesses, sending bank confirmations, and examining cash disbursements are procedures typically performed during an audit, not a review.

Which of the Following Procedures Should an Accountant Perform During