Which of the following procedures is usually included in a review engagement of a nonpublic entity?
A)The confirmation of accounts receivable.
B)A study and evaluation of internal control.
C)An inquiry concerning subsequent events.
D)The observation of physical inventory counts.

Question

Quizplus · Accepted Answer

An inquiry concerning subsequent events is usually included in a review engagement of a nonpublic entity. This is because subsequent events may have a material effect on the financial statements, and the review engagement requires the auditor to perform analytical procedures to identify whether there are any material modifications that need to be made to the financial statements. A, B, and D are all procedures typically performed in an audit, not a review engagement.

Which of the Following Procedures Is Usually Included in a Review