Review Engagements Flashcards

1
Q

What type of assurance is given in a review?

A

Limited or negative insurance

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2
Q

What needs to be documented in the engagement letter?

A

1) Scope and objective
2) Responsibilities of the practitioner
3) Responsibilities of the responsible party
4) Statement that the engagement will be done in accordance with AICPA standards
5) Statement that a review is less in scope than an examination
6) Statement that identifies the measurement criteria to be used
7) Acknowledgement that the engaging party will provide a representation letter at the end of the engagement

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3
Q

What procedures need to be performed under a review?

A

1) Analytical procedures
2) Inquiries of management

If analytical procedures are not applicable, then you need to perform other procedures to obtain that assurance

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4
Q

T/F: Written representations should be obtained?

A

TRUE

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5
Q

If the engaging party is the responsible party and refused to provide written representation, what should happen?

A

Withdrawal

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6
Q

If the engaging party is NOT the responsible party and refuses to provide written representation, what should happen?

A

Try and obtain oral responses

Restrict report to certain parties

If you cannot obtain oral response, then you should withdrawal

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