Items 106 through 120 represent a series of unrelated procedures that an accountant may consider performing in separate engagements to (1) audit the financial statements of a nonissuer, (2) review the financial statements of a nonissuer, (3) compile the financial statements of a nonissuer, and (4) prepare the financial statements of a nonissuer. For each item, indicate whether the procedure is required (R) or not required (N) for each of the four types of engagements.

106. The accountant should establish an understanding with the entity regarding the nature and limitations of the services to be performed.

107. The accountant should make inquiries concerning actions taken at the board of directors' meetings.

108. The accountant, as the entity's successor accountant, should communicate with the predecessor accountant to obtain access to the predecessor's working papers.

109. The accountant should obtain a level of knowledge of the accounting principles and practices of the entity's industry.

110. The accountant should obtain an understanding of the entity's internal control.

111. The accountant should perform analytical procedures designed to identify relationships that appear to be unusual.

112. The accountant should make an assessment of control risk.

113. The accountant should send a letter of inquiry to the entity's attorney to corroborate the information furnished by management concerning litigation.

114. The accountant should obtain an management representation letter from entity.

115. The accountant should study the relationships of the financial statement elements that would be expected to conform to a predictable pattern.

116. The accountant should communicate to the entity's senior management illegal employee acts discovered by the accountant that are clearly inconsequential.

117. The accountant should make inquiries about events subsequent to the date of the financial statements that would have a material effect on the financial statements.

118. The accountant should modify the accountant's report if there is a change in accounting principles that is adequately disclosed.

119. The accountant should submit a hard copy of the financial statements and accountant's report when the financial statements and accountant's report are submitted on a computer disk.

120. The accountant should perform specific procedures to evaluate whether there is substantial doubt about the entity's ability to continue as a going concern.

Procedure	Audit	Review	Compilation	Preparation
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120