The report of a CPA on a review of the financial statements of a nonpublic entity should not include a statement that
A) All information included in the financial statements is the representation of the entity's management.
B) The review was performed in accordance with generally accepted auditing standards.
C) The CPA is not aware of any material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles.
D) A review consists principally of inquiries of company personnel and analytical procedures applied to financial data.

Question

Quizplus · Accepted Answer

The report of a CPA on a review of the financial statements of a nonpublic entity may not include a statement that the review was performed in accordance with generally accepted auditing standards since a review is not an audit. Instead, the report should state that the review was performed in accordance with Statements on Standards for Accounting and Review Services (SSARSs), which governs reviews. The other options listed are typical statements that may be included in a review report.

The Report of a CPA on a Review of the Financial