Which of the following should be included in an accountant's standard report based upon the review of a nonpublic entity's financial statements?
A)A statement that the review was performed in accordance with generally accepted audit standards.
B)A statement that a review consists principally of inquiries and analytical procedures.
C)A statement that the review includes a study and evaluation of the internal controls of the entity.
D)A statement that a review is substantially greater in scope than a compilation.

Question

Quizplus · Accepted Answer

A standard report based on the review of a nonpublic entity's financial statements should include a statement that a review consists principally of inquiries and analytical procedures. This statement accurately reflects the nature and scope of a review engagement. However, options A, C, and D are not correct as they do not accurately reflect the nature of a review engagement or the content of a standard review report.

Which of the Following Should Be Included in an Accountant's