Which of the following procedures is more likely to be performed in a review engagement of a nonpublic entity than in a compilation engagement?
A)Gaining an understanding of the entity's business transactions.
B)Gaining an understanding of the accounting principles and practices in the industry.
C)Obtaining a representation letter from the chief executive officer.
D)Assisting the entity in adjusting the accounting records.

Question

Quizplus · Accepted Answer

In a review engagement, obtaining a representation letter from management (e.g., the chief executive officer) is a standard procedure, which is not typically required in a compilation engagement. This letter is used to confirm certain representations made to the auditor and to document the continuing appropriateness of such representations.

Which of the Following Procedures Is More Likely to Be