Problem A$.58$ Errors in Review Report

Required: These supervisor's review notes may or may not be correct. For each item below, a

through m $,$ indicate whether Stone is correct $(C)$ or incorrect $($ I $)$ in the criticism of Kent's draft.

a$.$ Th report should contain no reference to the prior year audited financial statements in the first

paragraph.

b$.$ All current year financial statements are not properly identified in the first paragraph.

c$.$ The report should contain no reference to the American Institute of Certified Public Accountants in

the first paragraph.

d$.$ The basic procedures performed in a review $($analytical procedures and inquiries$)$ should be

provided in the Accountant's Responsibility section of the report and not the first paragraph.

e$.$ The report should contain no comparison of the scope of a review to an audit in the first paragraph.

f$.$ Limited assurance should be expressed on the current year reviewed financial statements in the first

paragraph.

g$.$ The report should contain a statement that no opinion is expressed on the current year financial

statements in the first paragraph.

h$.$ The report should contain a reference to "accounting principles generally accepted in the United

States of America" in the Management's Responsibility for the Financial Statements section.

i$.$ The report should not express a restriction on the use of the accountants' review report in the

Accountant's Conclusion section.

j$.$ The Accountant's Responsibility section should indicate that the accountant is required to be

independent of the client.

k $.$ The report should indicate the type of opinion expressed on the prior year audited financial

statements in the other$-$matter paragraph.

The report should indicate that no auditing procedures were performed after the date of the report on

the prior year financial statements in the other$-$matter paragraph.

m $.$ The report should not contain a reference to "updating the prior year auditors' report for events and

circumstances occurring after that date" in the other$-$matter paragraph.