Which of the following procedures is not usually performed by the accountant during a review engagement?

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1)Which of the following procedures is not usually performed by the accountant during a reviewengagement of a nonpublic entity?A)Communication of any material weaknesses discovered during the consideration of internalcontrol.B)Issuance of a report stating that the review was performed in accordance with standardsestablished by the AICPA.C)Reading of the financial statements to determine if they conform with generally acceptedaccounting principles.D)Inquiry about actions taken at meetings of the board of directors that may affect the financialstatements.Answer: A

Home » Test Prep » CPA Auditing and Attestation » Which of the following procedures is not usually performed by the accountant during a review engagement of a nonissuer?

Which of the following procedures is not usually performed by the accountant during a review engagement of a nonissuer?
A. Inquiring about actions taken at meetings of the board of directors that may affect the financial statements.
B. Issuing a report stating that the review was performed in accordance with standards established by the AICPA.
C. Reading the financial statements to consider whether they conform with generally accepted accounting principles.
D. Communicating any material weaknesses discovered during the consideration of internal control.

Correct Answer: D Explanation/Reference:

Choice "d" is correct. Since internal control inquiries are not part of a review, there is generally no consideration of internal control in a review engagement.

Choice "a" is incorrect. Inquiries to be made during a review may relate to meetings of the board of directors.
Choice "b" is incorrect. A standard review report does state that the review was performed in accordance with SSARS, issued by the AICPA. Choice "c" is incorrect. Analytical procedures to be performed during a review should include reading the financial statements.

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