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The following items represent a series of unrelated procedures that a practitioner may consider performing in an engagement to review or compile the financial statements

The following items represent a series of unrelated procedures that a practitioner may consider performing in an engagement to review or compile the financial statements of a nonpublic entity. Procedures may apply to only one type of engagement, both, or neither. For each procedure described below, select one of the following options:

The practitioner should establish an understanding with the entity regarding the nature and limitations of the srvices to be performed.

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

The practitioner should perform analytical procedures designed to identify relationships that appear unusual.

The practitioner should obtain a management representation letter from the entity.

The practitioner should obtain an understanding of the entitys internal control.

The practitioner should send a letter of inquiry to the client's lawyer to corroborate the information furnished by management concerning litigation.

The practitioner should perform a physical examination of inventory.

a.

Review only

b.

Review and compilation both

c.

Neither review nor compilation (None)

d.

Neither review nor compilation (None)

e.

Review only

f.

Neither review nor compilation (None)

g.

Review only

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