Which of the following procedures would not be performed in a review of the financial statements of a private company?
A)Enquire about the accounting system and bookkeeping procedures.
B)Perform analytical procedures to identify relationships and individual items that appear to be unusual.
C)Obtain a lawyer's letter about claims and possible claims.
D)Study the financial statements for indications that they conform to generally accepted accounting principles.

Question

Quizplus · Accepted Answer

Obtaining a lawyer's letter about claims and possible claims is not typically performed in a review of the financial statements of a private company. This procedure is more commonly performed in an audit. A review typically involves analytical procedures and inquiries of management, but does not include the level of testing and documentation required in an audit. Options A, B, and D are all common procedures performed in a review of financial statements.

Which of the Following Procedures Would Not Be Performed in a Review