Which one of the following is generally more important in a review than in an agreed upon procedures engagement?
A)Obtaining a signed representation letter.
B)Obtaining a signed engagement letter.
C)Gaining familiarity with industry accounting principles.
D)Determining the accounting bases on which the financial report is to be presented.

Question

Quizplus · Accepted Answer

In a review engagement, obtaining a signed representation letter from management is generally more important than in an agreed-upon procedures engagement. This is because a review requires management's assertions about the financial statements, whereas an agreed-upon procedures engagement involves carrying out procedures agreed upon with the client and other users, without the auditor providing an opinion on the financial statements.

Which One of the Following Is Generally More Important in a Review