Inquiry of the entity's personnel and analytical procedures are the primary bases for the issuance of a(n)
A) Compilation report on financial statements for a nonpublic company in its first year of operations.
B) Auditor's report on financial statements supplemented with price-level information.
C) Review report on comparative financial statements for a nonpublic company in its second year of operations.
D) Management advisory report prepared at the request of the client's audit committee.

Question

Quizplus · Accepted Answer

Inquiry of the entity's personnel and analytical procedures are typically used in a review engagement, where the auditor provides limited assurance on financial statements. The other choices do not fit the description of the procedures or the type of engagement.

Inquiry of the Entity's Personnel and Analytical Procedures Are the Primary