Question
Which of the following procedures would an accountant be most likely to perform during an engagement to review the financial statements of a nonissuer (nonpublic
Which of the following procedures would an accountant be most likely to perform during an engagement to review the financial statements of a nonissuer (nonpublic entity)?
A. Compare the financial statement actual expenses to budgeted expenses.
B. Analyze all contracts with a potentially material effect on the financial records, such as purchase contracts for large capital expenditures.
C. Obtain an understanding of the clients segregation of duties regarding the recording and reconciling of financial information.
D. Obtain written representation from management indicating its evaluation of the effectiveness of the entitys internal controls.
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