Reporting-Review

Question 1

An accountant has been engaged to review a nonissuer’s financial statements that contain several departures from GAAP. If the financial statements are not revised and modification of the standard review report is not adequate to indicate the deficiencies, the accountant should:

Answer 1

Withdraw from the engagement and provide no further services concerning these financial statements

Question 2

Statements on Standards for Accounting and Review Services establish standards and procedures for which of the following engagements?

Answer 2

Compiling an individual’s personal financial statement to be used to obtain a mortgage.

Question 3

If interim substantive procedures for an account identified no exceptions, which of the following would the auditor not perform on that account at year-end?

Answer 3

Tests of details for the entire year under audit.