During a review of financial statements of a nonpublic entity, the CPA would be least likely to:
A)perform analytical procedures designed to identify relationships that appear to be unusual.
B)obtain written confirmation from banks regarding loans to the entity.
C)obtain reports from other accountants who reviewed a portion of the total entity.
D)read the financial statements and consider their conformance with generally accepted accounting principles.

Question

Quizplus · Accepted Answer

Obtaining written confirmation from banks regarding loans to the entity is more characteristic of an audit rather than a review of financial statements. Reviews primarily involve analytical procedures and inquiries rather than the more extensive procedures such as confirmations used in audits.

During a Review of Financial Statements of a Nonpublic Entity